Texas ranks as No. 1 most financially distressed state, says new report

Money Woes

Texas is the state with the most residents in financial distress. Photo via Getty Images

Experiencing financial strife is a nightmare of many Americans, but it appears to be a looming reality for Texans, according to a just-released WalletHub study. It names Texas the No. 1 most "financially distressed" state in America.

To determine the states with the most financially distressed residents, WalletHub compared all 50 states across nine metrics in six major categories, such as average credit scores, the share of people with "accounts in distress" (meaning an account that's in forbearance or has deferred payments), the one-year change in bankruptcy filings from March 2024, and search interest indexes for "debt" and "loans."

Joining Texas among the top five most distressed states are Florida (No. 2), Louisiana (No. 3), Nevada (No. 4), and South Carolina (No. 5).

Texas' new ranking as the most financially distressed state in 2025 may be unexpected, WalletHub says, considering the state has a "bigger GDP than most countries" and still has one of the top 10 best economies in the nation (even though that ranking is also lower than it was in previous years).

Even so, Texas residents are stretching themselves very thin financially this year. Texans had the ninth lowest average credit scores nationwide during the first quarter of 2025, the study found, and Texans had the sixth-highest increase in non-business-related bankruptcy filings over the last year, toppling 22 percent.

"Texas also had the third-highest number of accounts in forbearance or with deferred payments per person, and the seventh-highest share of people with these distressed accounts, at 7.1 percent," the report said.

This is where Texas ranked across the study's six key dimensions, where No. 1 means "most distressed:"

No. 5 – "Loans" search interest index rank
No. 6 – Change in bankruptcy filings from March 2024 to March 2025 rank
No. 7 – Average number of accounts in distress rank
No. 8 – People with accounts in distress rank
No. 13 – Credit score rank and “debt” search interest index rank

Examining these financial factors on the state level is important for understanding how Americans are faring with economic issues like inflation, unemployment rates, or natural disasters, according to WalletHub analyst Chip Lupo.

"When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state," Lupo said.

On the other side of the spectrum, states like Hawaii (No. 50), Vermont (No. 49), and Alaska (No. 48) are the least financially distressed states in America.

The top 10 states with the most people in financial distress in 2025 are:

No. 1 – Texas
No. 2 – Florida
No. 3 – Louisiana
No. 4 – Nevada
No. 5 – South Carolina
No. 6 – Oklahoma
No. 7 – North Carolina
No. 8 – Mississippi
No. 9 – Kentucky
No. 10 – Alabama

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A version of this article originally appeared on CultureMap.com.

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Everything's bigger here in Texas — including the spending. Photo via Getty Images

Texas charges up top-10 rank in states dealing with the most debt, per report

loan star state

It's not too late to rein in that holiday spending, Texas. A new financial report has revealed Texas is the No. 9 state with the highest debt levels in the country.

The report by personal finance website CreditDonkey examined each state's average mortgage debt, student debt, automobile debt, and credit card debt. Rankings were determined based on which state had the highest amount of debt.

Texas was ranked so highly due to its rampant amount of auto loan debt, the most out of all 50 states. Over 100 million Texans have loans on their cars, which has racked up more than $1.5 trillion in auto loan debt. The average Texan's auto loan debt stands at $27,739.

Texans' higher-than-average credit card debt was also a major factor, according to the report. The average credit card debt amount adds up to $6,542.

Speaking of debt, it's worth noting that this report comes after a recent survey that found The Woodlands ranks No. 10 in the U.S. for holiday spending budgets. (No word as to how much of that holiday spending ends up as revolving credit balances.)

The average mortgage debt in the Lone Star State is $217,461, while the average student debt amounts to $33,354. In Houston, first time buyers need to earn 13.9 percent more than 2022 to afford that first home, per a recent report.

While Texas' level of debt is no laughing matter, residents can find some relief they're not living in California. Californians have the most debt in America, with the average mortgage debt at nearly $423,000 per household, and an average student loan debt of $37,384.

CreditDonkey Director of Research Anna Ge explained the "multifaceted story" of why debt in Texas (and overall in the United States) has skyrocketed over the years.

"The causes for the surge in debt are rooted in a confluence of factors – from the pursuit of higher education to home-ownership aspirations and the challenges of rising costs across the board," she said. "The ease of access to credit, while providing immediate relief, has contributed to a culture where spending can outpace income."

Population growth and consumerism are two other driving factors, according to Ge.

"There are also more deep-rooted issues that are causing such drastic increases in debt, from rising costs of essentials such as gas and groceries, to healthcare and living expenses (rent and bills), as costs continue to rise many Americans are being pushed to the edge and require relief that inevitably results in the building up of debt," Ge continued.

The top 10 states struggling with the most debt are:

No. 1 – California
No. 2 – Hawaii
No. 3 – Maryland
No. 4 – Alaska
No. 5 – Colorado
No. 6 – Washington
No. 7 – Virginia
No. 8 – Georgia
No. 9 – Texas
No. 10 – Nevada

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This article originally ran on CultureMap. Steven Devadanam contributed to this article.

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7 finalists compete to be crowned Houston's 2026 Startup of the Year

Cast Your Vote

Each year, the Houston Innovation Awards program recognizes the best and brightest in the local innovation community. And while most of the award winners are selected by our esteemed panel of judges, one winner is determined by you.

Voting is now open for our people's choice award: 2026 Startup of the Year. Seven exceptional finalists are in the running for the title, and your votes will determine who wins.

From innovative platforms benefiting the education, commerce, health, investment and IT sectors to next-gen memory technology and improvements for robotic supply chains, these startups are making an impact in Houston and beyond.

Read about our Startup of the Year finalists and their missions and achievements below, then cast your vote. You can vote once per day through Nov. 13, so make your voice heard.

The winner, along with the winners in all other categories, will be revealed in mid-November right here on InnovationMap.com. Stay tuned.

FluxWorks

Fluxworks is aiming to shape the future of the robotic supply chain with its flagship Celestial Gear. The magnetic gearbox offers a contactless design that leads to less wear, debris and maintenance. In 2026, Fluxworks closed a $5 million seed round to scale the product.

IronLattice

IronLattice is developing next-generation, ferroelectric memory technology for AI and high-performance computing workloads. In June 2026, the company closed a $3 million angel round. It began wafer production this fall, with its first working device targeted for completion in spring 2027.

Lumino

Lumino is a unified commerce ecosystem and payments platform designed to provide businesses with the technology, payments infrastructure, intelligence and tools they need to grow while creating impact in their communities. Lumino publicly launched its platform in 2026 in Houston and is rolling out its next stage of global expansion.

Progress Report

Progress Report is a K-12 learning-intelligence platform designed to go beyond identifying that a student is struggling. It traces performance to learning gaps and prerequisite skills, helping educators understand where a student is struggling and what may be causing it. Progress Report recently released a fully built production platform and launched pilots with 35 educators and 200 students across Texas and Arizona.

Rosarium Health

Rosarium Health is a platform that coordinates the full process for home accessibility upgrades and modifications for seniors and people living with disabilities. In 2026, the startup announced $6 million in seed funding and scaled to a national network of 800-plus clinicians and 3,000-plus contractors.

Thread

Thread is building an AI-powered service desk platform for Managed Service Providers (MSPs). Its technology combines agentic AI, assistive AI, automation, and real-time communication to help MSPs resolve IT support requests faster and with less manual work.

TokenRoster

TokenRoster is an AI-powered assessment platform for early-stage startups, providing founders with an investor-grade evaluation of their company before the pitch and giving investors a curated roster of vetted companies. Since launch, TokenRoster has grown to 65 companies and 43 founder accounts, with 10 assessment frameworks available.

Houston Innovation Awards honor Don Kendall Jr. with posthumous Trailblazer Legacy Award

lasting legacy

Every year, the Houston Innovation Awards honor one Houstonian with the Trailblazer Award, whose impact is felt throughout the city's innovation and business ecosystem.

This year, the Trailblazer Legacy Award will be given posthumously to Don Kendall Jr., who died in September while on a trip to the Republic of the Congo with the Jane Goodall Institute, one of the many organizations he was deeply involved with.

Kendall's obituary puts it simply: "Don’s truest passions were conservation and his family." Many saw those passions play out in his career, particularly in the role he played in shaping Houston's clean energy sector.

Kendall served as general partner of New Climate Ventures, a Houston-based early-stage venture capital firm that invests in next-gen energy, materials and fuel technologies and startups. The firm's portfolio includes Houston-based clean energy companies like Solidec, Syzygy Plasmonics and Rheom Materials.

Kendall was also founding managing director and CEO of Kenmont Capital LP. He ran a $500 million distressed debt and credit-based hedge fund focused on the energy, power and transportation sectors and one of the top-performing private equity funds under the Kenmont umbrella.

He served on the board of Talos Energy, American Midstream Partners, Syzygy Plasmonics, Tangent Energy, Stream Energy and others. Notably, he served as Chair of the Special Committee of the SolarCity board during its acquisition by Tesla in 2016. According to his obituary, Kendall negotiated with "Elon Musk in the middle of the night on a rickety pier in Indonesia after eluding a poisonous snake."

Outside of the clean energy space, Kendall also served on the boards of the Jane Goodall Institute, Earthwatch International and Ecological Defense Group. He also served as vice chair of the Houston Zoo Inc. and chair of its Conservation Committee.

Kendall was selected by our esteemed panel of judges to receive the 2026 Trailblazer Legacy Award. The panel includes carbon removal entrepreneur and CEO of Houston-based Mars Materials Aaron Fitzgerald.

Fitzgerald shares the profound impact Kendall had on his career and those of many others.

"Honoring Don with the Trailblazer Legacy Award is a fitting tribute to a leader whose impact spanned civic work with the Houston Zoo, wildlife conservation, and the growth of our startup ecosystem," Fitzgerald says. "He paired a keen eye for potential with the relentless drive to unlock it. For Mars Materials, his early backing carried us through a critical valley when we needed belief the most, and his presence as a personal mentor is profoundly missed."

Don was an avid traveler, cyclist and collector. He is survived by his wife of 50 years, Diane S. Kendall. A celebration of life will be held early in 2027.

2 Houston suburbs rank among 5 best cities to retire, says U.S. News

Slowing Down

Houston and nine of its suburbs are earning new acclaim on U.S. News and World Report's just-released list of the best U.S. cities for retirees in 2027. Two northern suburbs, The Woodlands and Spring, are resting easy among the top five nationwide.

The 2027 Best Places to Retire list evaluated over 850 U.S. cities based on six livability metrics that best serve American retirees: quality of life, affordability, health care, retiree taxes, job market, and population and migration. The top 250 finalist cities were then ranked nationally and by city size.

Midland, Michigan topped the list for the second consecutive year and is followed by Homosassa Springs, Florida (No. 2) and Weirton, West Virginia (No. 3).

The Woodlands and Spring respectively maintained their standings as the No. 4 and No. 5 best cities for retirees for the second year in a row. The Woodlands topped the separate list of the best midsized U.S. cities to retire, while Spring landed 5th among the smallest U.S. cities.

Houston proper was declared the No. 2 best big city for retirees, and it ranked 89th overall. Elsewhere in the metro, Pearland (No. 13) and Conroe (No. 14) ranked just outside the overall top 10 but ranked 4th and 5th among the best midsized cities for retirees.

U.S. News said affordability is the "most considered factor" when it comes to picking the best place to live a low-stress retirement life, and that's what Houston and its neighbors deliver. Affordable cities also give retirees "a sense of security and comfort as they live out their golden years," according to Megan Wood, U.S. News assistant managing editor of home services and real estate.

"It’s no secret that affordability is top of mind for Americans this year, which is why U.S. News updated its weighting criteria to better align with what retirees prioritize," Wood said. "The 2027 rankings reflect key metrics used to highlight the places that
best suit retiree needs."

Sugar Land was declared the 10th best place to live in the U.S. in a separate U.S. News report earlier this year, but it doesn't quite meet the expectations for retirees. This particular suburb ranked as the 45th best overall city to retire, but it fared better in the city size ranking and landed 13th among the biggest U.S. cities.

Pasadena also surprised as the 85th best place to retire nationwide in this report, despite being hailed as the No. 3 best city to retire in Texas by RetirementLiving.com.

Three more Houston neighbors ranked among the top 100 overall best places to retire for 2027: League City (No. 25), Missouri City (No. 49), and Baytown (No. 88).

These are the top 10 best U.S. cities to retire for 2027:

No. 1 – Midland, Michigan
No. 2 – Homosassa Springs, Florida
No. 3 – Weirton, West Virginia
No. 4 – The Woodlands
No. 5 – Spring, Texas
No. 6 – Rio Rancho, New Mexico
No. 7 – Altoona, Pennsylvania
No. 8 – Paducah, Kentucky
No. 9 – Lynchburg, Virginia
No. 10 – Palm Coast, Florida

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This article first appeared on CultureMap.com.

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