Alabama Financial Distress Profile
Composite distress data for 67 counties, updated quarterly from federal sources. Household debt, delinquency, foreclosure law, and county-level distress scores compared to national averages.
· Data from NY Fed, CFPB, BLS, US Courts, Q4 2025
Behind on your mortgage in Alabama? See your options under Alabama law →
Alabama ranks #19 nationally for household financial distress. County Distress Index details are listed separately for its 67 counties. The national State Distress Index average is 50.0.
How Does Alabama Compare to the National Average?
Alabama is above the national average on 2 of 5 key household distress metrics. Credit card delinquency stands at 12.2% (below the 12.4% national rate), auto loan delinquency at 6.5%, and total debt per capita at $48,910.
Since 2019, credit card delinquency in Alabama has risen 3.9pp and total household debt has grown 28.7%. The state shows a mixed distress picture across different debt categories.
Key Statistics at a Glance
State Distress Index: Alabama
Movement since 2006
Since 2006, Alabama has climbed from the 16th-most distressed jurisdiction to the 14th-most distressed, as of 2025 Q1. Its composite State Distress Index score rose from 63.2 to 65.3 over the same span.
Quarter-aligned back-series. Each quarter re-ranks all 51 jurisdictions on that quarter's own data, so a state's position here can sit several spots from the current reading above, which uses each input's latest value.
Domain Breakdown
The national American Distress Index reads 43.8 (Typical). On average, its inputs sit higher than in 44% of their own quarterly histories. Alabama's State Distress Index of 61.6 (moderate-high state distress) is computed from 4 equal-weighted domains covering delinquency, default and legal signals, housing-basis debt burden, and labor.
Alabama vs. National Average
Delinquency rates measure the share of loan accounts 30 or more days past due. Higher rates signal greater household financial stress. Debt and balance figures are per capita, adjusted for state population.
Download all states (CSV)Alabama vs. National: 5 Key Metrics (Q4 2025)
Source: NY Fed Consumer Credit Panel / Equifax, Q4 2025.
Similar States by Distress Level
States ranked closest to Alabama (#19) on the State Distress Index. Peer comparison reveals whether distress patterns are regional or structural.
Change Since 2019
Pre-pandemic 2019 values provide a baseline for how distress has evolved. Credit card and auto loan delinquency have risen sharply in most states since pandemic-era forbearance protections expired.
| Metric | 2019 | 2025 | Change | Nat'l 2025 |
|---|---|---|---|---|
| Credit Card Delinquency | 8.4% | 12.2% | +3.9pp | 12.4% |
| Auto Loan Delinquency | 6.6% | 6.5% | -0.0pp | 5.2% |
| Mortgage Delinquency | 0.88% | 1.15% | +0.3pp | 0.94% |
| Total Debt per Capita | $38,000 | $48,910 | +28.7% | $63,200 |
| CC Balance per Capita | $2,550 | $3,400 | +33.3% | $4,350 |
Alabama Foreclosure Law Summary
Understanding your state's foreclosure process is critical if you fall behind on mortgage payments. Alabama primarily uses non-judicial foreclosure.
Alabama foreclosures almost always proceed without court involvement, using the power of sale clause in the mortgage (Ala. Code § 35-10-11). Judicial foreclosure is available (Ala. Code § 35-10-1 et seq.) but rarely used.
- Post-sale redemption: One year after the foreclosure sale (Ala. Code § 6-5-248). This is one of the lo…
State-Level Divergence
National averages mask wide variation across states. Alabama's credit card delinquency of 12.2% falls below the national 12.4%, but other metrics tell a more nuanced story. With 2 of 5 tracked metrics above national averages and a Distress Index of 61.6 (moderate-high state distress), the pressure on Alabama households is real. The Household Debt by State roundup tracks all 51 jurisdictions.
Distress by County
The County Distress Index scores every county in Alabama on a 0-100 scale using five equal-weighted domains: delinquency, default and legal, debt burden, labor, and safety net and buffer. Alabama's 67 counties average 65.6 — above the national county mean of 50.0.
Score Label Distribution
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Most Distressed Counties
| County | Score | Score Label | Top Driver |
|---|---|---|---|
| Dallas County | 91.9 | extreme county distress | Delinquency |
| Wilcox County | 90.9 | extreme county distress | Default & Legal |
| Sumter County | 86.5 | very high county distress | Default & Legal |
| Greene County | 86.3 | very high county distress | Default & Legal |
| Macon County | 85.4 | very high county distress | Default & Legal |
Dallas County ranks #5 most distressed nationally out of 3,144 counties.
Least Distressed Counties
| County | Score | Score Label | Top Domain |
|---|---|---|---|
| Shelby County | 37.3 | low-moderate county distress | Default & Legal |
| Limestone County | 38.3 | low-moderate county distress | Default & Legal |
| Madison County | 43.8 | moderate-low county distress | Default & Legal |
| St. Clair County | 45.6 | moderate-low county distress | Default & Legal |
| Baldwin County | 46.6 | moderate-low county distress | Default & Legal |
The gap between Alabama's most and least distressed counties is 54.7 points — Dallas County (91.9, extreme county distress) vs. Shelby County (37.3, low-moderate county distress). That spread reveals two very different economic realities within the same state.
Explore all 67 Alabama counties →CFPB Mortgage Complaints in Alabama
The Consumer Financial Protection Bureau has received 4,266 mortgage complaints from Alabama since 2012 — 83.5 per 100,000 residents, below the national rate of 133.2 per 100K. Alabama ranks #34 of 51 jurisdictions for complaint density.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Complaints | 218 | 246 | 229 | 274 | 277 | 372 |
Source: CFPB Consumer Complaint Database. Filed a mortgage complaint? Search the complaint database.
Bankruptcy Filings: Alabama
The Administrative Office of the U.S. Courts filing rate reports annual cases per resident. It does not identify household causes, motives, assets, income, or case outcomes. Alabama's filing rate exceeds the national average.
Source: U.S. Courts, Administrative Office. Table F-2: Cases Commenced by Chapter. Per-capita rates use 2024 Census population estimates.
Credit Distress: Alabama
The Philadelphia Fed Consumer Credit Explorer tracks credit health metrics from Equifax data. 20.0% of Alabama residents have debt in collections — above the national rate of 13.9%. 23.6% have subprime credit scores (below 620), and 48.6% are credit-constrained.
Source: Philadelphia Fed Consumer Credit Explorer. Data from NY Fed Consumer Credit Panel / Equifax. 2025 Q1.
Economic Context: Alabama
SNAP enrollment and unemployment rates provide upstream context for household debt distress. Higher food assistance enrollment signals that more families are struggling with basic expenses, while elevated unemployment directly reduces income available for debt service.
Sources: USDA Food and Nutrition Service, BLS Local Area Unemployment Statistics. Population: U.S. Census Bureau 2024 estimates.
Safety Net Strength: Alabama
The Safety Net Index measures how much support infrastructure is available to households in financial distress — combining healthcare coverage, food assistance, emergency housing funds, and legal protections. Alabama scores 47.2 out of 100 (Weak), ranking #28 of 51 jurisdictions.
Component Breakdown
Sources: Kaiser Family Foundation (Medicaid, 2024), USDA FNS (SNAP, 2025), U.S. Treasury HAF program status, state foreclosure statutes.
Frequently Asked Questions
What is the credit card delinquency rate in Alabama?
The credit card delinquency rate in Alabama is 12.2% as of Q4 2025, ranking #16 among all states and DC. The national average is 12.4%. This rate has risen from 8.4% in 2019.
How does Alabama's household debt compare to the national average?
Alabama residents carry $48,910 in total debt per capita, below the national average of $63,200. Debt per capita has grown 28.7% since 2019. Alabama ranks #41 nationally for total household debt per capita.
What is the auto loan delinquency rate in Alabama?
Auto loan delinquency in Alabama stands at 6.5% as of Q4 2025, above the national rate of 5.2%. This ranks #4 nationally. The rate was 6.6% in 2019.
What type of foreclosure process does Alabama use?
Alabama primarily uses non-judicial foreclosure. This allows lenders to foreclose without court proceedings, resulting in a faster process. See our full Alabama foreclosure law guide for timelines, protections, and legal resources.
Is Alabama above or below the national average for financial distress?
Alabama scores 61.6 on the State Distress Index (moderate-high state distress), ranking #19 of 51 jurisdictions. That is 11.6 points above the national state average of 50.0. This composite score is built from 4 domains: delinquency, default and legal, debt burden on a housing basis, and labor. Separately, the national American Distress Index reads 43.8 (Typical) for the country over time. On average, its inputs sit higher than in 44% of their own quarterly histories.
How many CFPB mortgage complaints have been filed in Alabama?
The CFPB has received 4,266 mortgage complaints from Alabama since 2012, a rate of 83.5 per 100,000 residents. This ranks #34 of 51 jurisdictions. The national average is 133.2 per 100K. Companies responded to 97.8% of Alabama complaints within the required timeframe.
What is the bankruptcy filing rate in Alabama?
Alabama had 20,636 bankruptcy filings in the 12-month period ending Dec 2025, a rate of 404.0 per 100,000 residents — above the national rate of 169.1 per 100K. This ranks #1 of 51 jurisdictions. Chapter 7 filings account for 28.7% and Chapter 13 for 70.8%. Filings changed +7.9% year-over-year.
What percentage of people in Alabama have debt in collections?
20.0% of individuals in Alabama have debt in collections, above the national rate of 13.9%. This ranks #4 of 51 jurisdictions. Additionally, 23.6% of Alabama residents have subprime credit scores (below 620), compared to 16.9% nationally. Data from the Philadelphia Fed Consumer Credit Explorer (NY Fed / Equifax).
What is the SNAP enrollment rate in Alabama?
667,459 residents of Alabama receive SNAP benefits, an enrollment rate of 13.1% — above the national rate of 10.9%. This ranks #12 of 51 jurisdictions. SNAP participation has changed -9.5% year-over-year. The pre-pandemic rate was 13.9%.
How strong is Alabama's financial safety net?
Alabama scores 47.2 out of 100 on the Safety Net Index, ranking #28 of 51 jurisdictions (Weak). The score combines Medicaid coverage (19.4% enrollment rate, non-expansion state), SNAP enrollment (13.1%), Homeowner Assistance Fund status (winding down), and foreclosure legal protections. The national average is 47.8.
Which Alabama counties have the highest financial distress?
Dallas County is the most distressed county in Alabama with a County Distress Index score of 91.9 · extreme county distress, ranking #5 nationally out of 3,144 counties. Wilcox County (90.9 · extreme county distress), Sumter County (86.5 · very high county distress), Greene County (86.3 · very high county distress) round out the top distressed counties. Shelby County is the least distressed at 37.3 · low-moderate county distress. See all 67 counties at /counties/alabama/.
How long can foreclosure take in Alabama?
Alabama uses non-judicial foreclosure, which allows lenders to foreclose without court proceedings. In Alabama, the bank can foreclose in roughly 60–120 days from first missed payment to sale — though individual cases vary with cure periods, mediation, postponements, court backlogs, and bankruptcy filings. Homeowners have a right to cure: You can stop the foreclosure at any time before the sale by paying all missed pa…. The homestead exemption is $15,500. Full details at /help/foreclosure/alabama/.
Where does Alabama rank for financial distress?
Alabama scores 61.6 on the State Distress Index (moderate-high state distress), ranking #19 of 51 jurisdictions. 2 of 5 key metrics exceed national averages. The highest SDI domain is Default & Legal. County Distress Index details are listed separately by county. The safety net ranks #28 (Weak) — non-Medicaid-expansion state.
Data Sources
NY Fed Consumer Credit Panel
State-level household debt and delinquency statistics from the Federal Reserve Bank of New York, based on Equifax credit bureau data. Updated quarterly.
American Distress Index
Composite index tracking U.S. household financial distress across five equal-weighted domains. National score as of the latest available quarter.
Alabama Foreclosure Statutes
State foreclosure law data compiled from primary statutory sources and validated against legal databases. Last verified 2026-03-10.
CFPB Complaint Database
Mortgage complaints filed with the Consumer Financial Protection Bureau, 2012–present. Density calculated using 2024 Census population estimates.
USDA SNAP State Activity
Monthly SNAP participation by state from the USDA Food and Nutrition Service. Enrollment rates computed against 2024 Census population estimates.
U.S. Bankruptcy Courts
Annual bankruptcy filings by chapter and district from the Administrative Office of the U.S. Courts. Per-capita rates computed against 2024 Census population estimates.
Philadelphia Fed Consumer Credit Explorer
Quarterly credit health metrics (collections, subprime share, delinquency, credit-constrained rates) from Equifax via the NY Fed Consumer Credit Panel.
Safety Net Index
Composite score from KFF Medicaid enrollment (2024), USDA SNAP participation (2025), U.S. Treasury HAF program status, and state foreclosure legal protections.