By Hank Russell
A recent study found that New York is in the top 20 when it comes to states in the most financial distress.
According to WalletHub, New York was the 16th-most financially distressed in the nation. To determine which states were in the greatest financial straits, WalletHub took into account certain factors such as credit scores, accounts in distress and change in bankruptcy filings, among others. The state with the most financial stress was Kansas, while Maine had the least.
The study also found that the Empire State was 26th in the nation in people whose bank accounts are in distress. The top three states whose residents were Florida, South Carolina and California. Michigan, Vermont and Rhode Island had the least financially stressed residents.
In addition, New York was in the top 20 in having the most significant change in the share of people whose accounts are in distress between the first quarter of 2025 and the first three months of 2026, listed at 19th. California had the largest change, while Michigan, Rhode Island and Vermont were tied with the lowest.
When it comes to the number of accounts in distress, New York is 28th in the nation, based on WalletHub data. The three states with the most financially distressed accounts are Louisiana, Florida and Kentucky, while Michigan, Washington and Vermont have the least. But New York was again in the top 20 — this time, 20th — in the biggest changes in average number of accounts in distress, from Q1 2025 to Q1 2026. Connecticut had the biggest change, while Michigan had the lowest.
Between March 2025 and March 2026, New York had the 16th-lowest change in bankruptcy filings, according to WalletHub. Maine had the lowest change while North Dakota had the highest.
“Measuring the share of residents in financial distress is a good way to take the pulse of a state and see whether people are generally thriving or having trouble making ends meet,” WalletHub analyst Chip Lupo said. “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.”