WalletHub study ranks Illinois among least financially distressed states in 2026
Illinois is among the states with the lowest levels of financial distress, according to a new report released July 15 by personal-finance company WalletHub. The study examines where financial hardship is most widespread across the United States, using data such as delinquent accounts, bankruptcy filings, and credit score changes.
WalletHub's report lists Kansas as the state experiencing the most financial distress, while Illinois ranks 42nd, placing it among the least distressed states. The top five most distressed states are Kansas, Louisiana, Florida, Texas, and South Carolina. The five least distressed are Idaho, Illinois, New Hampshire, Washington, and Wisconsin.
"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. 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," according to WalletHub.
Chip Lupo, a WalletHub analyst, said, "Kansas is the state experiencing the most financial distress. In Q1 2026, Kansas had the 14th-most accounts per person in financial distress. Kansas also had the 20th-lowest credit score in the country, and some of the highest Google searches for 'debt' and 'loans,' which shows that many people are desperate to borrow, despite already owing money."
The report notes that 8.8 million Americans currently have at least one credit account that is either delinquent or in forbearance. Additional studies from WalletHub examine financial distress at the city level and track increases in credit card and auto loan delinquencies across the country. More details and state rankings are available, according to WalletHub.
The findings provide insight into the ongoing financial challenges faced by many Americans and highlight significant differences in economic well-being across states.