Photo: Javier Zayas Photography / Moment / Getty Images
FLORIDA - Rising living costs are putting pressure on many Americans, with some relying on credit to cover basic expenses.
A recent LendingTree survey found that 25% of buy-now-pay-later users have allegedly used these loans to purchase groceries, highlighting financial strain among households.
A new report from WalletHub ranks Florida as the second most financially distressed state, behind Texas.
Financial distress is measured by factors such as accounts in forbearance, deferred payments, bankruptcy filings, and changes in credit scores.
WalletHub analyzed all 50 states using nine key metrics to calculate overall financial stress.
Texas ranked first, with high rates of searches for debt and loans, and a 22% increase in non-business bankruptcy filings over the past year.
Florida led the nation in the share of residents with accounts in financial distress and was second in average accounts per person affected.
The state also ranked ninth in average credit score, while previous data showed Floridians have the second-highest credit delinquency rate nationally.
Louisiana, Nevada, and South Carolina completed the top five most financially distressed states.
Louisiana had the highest share of accounts in forbearance, and Nevada ranked third-worst for credit scores.
Conversely, Hawaii, Vermont, Alaska, Oregon, and New Mexico were the least financially stressed, despite some lower credit scores in these states.
Rising costs for essentials, including housing, food, and healthcare, along with stagnant wages, contribute to widespread financial difficulty.
Financial experts advise households to budget carefully, communicate with creditors proactively, focus on high-interest debt, and explore additional income opportunities to manage personal finances.