Texas Financial Distress Profile 2026
Household debt, delinquency rates, and foreclosure law summary for Texas — compared to national averages. Data from the NY Fed Consumer Credit Panel, Q4 2025.
Last updated: 2026-03-09
How Does Texas Compare to the National Average?
Texas is above the national average on 4 of 5 key household distress metrics. Credit card delinquency stands at 14.2% (above the 12.4% national rate), auto loan delinquency at 5.8%, and total debt per capita at $60,020.
Since 2019, credit card delinquency in Texas has risen 5.0pp and total household debt has grown 32.5%. Multiple indicators place Texas among the higher-distress states nationally.
Key Statistics at a Glance
State Distress Index: Texas
Component Breakdown
The national American Distress Index reads 59.0 (Elevated). Texas's State Distress Index of 56.7 (Elevated) is computed from 6 data dimensions covering debt performance, economic need, bankruptcy filings, employment, consumer complaints, and safety net strength.
Texas 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)Texas 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 Texas (#13) 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 | 9.2% | 14.2% | +5.0pp | 12.4% |
| Auto Loan Delinquency | 5.8% | 5.8% | -0.1pp | 5.2% |
| Mortgage Delinquency | 0.89% | 1.21% | +0.3pp | 0.94% |
| Total Debt per Capita | $45,290 | $60,020 | +32.5% | $63,200 |
| CC Balance per Capita | $3,470 | $4,620 | +33.1% | $4,350 |
Texas Foreclosure Law Summary
Understanding your state's foreclosure process is critical if you fall behind on mortgage payments. Texas primarily uses non-judicial foreclosure.
Most Texas mortgage foreclosures are non-judicial — the lender sells the property through a trustee without going to court. Judicial foreclosure is required only for home equity loans, reverse mortgages, HOA assessment liens, and property tax liens.
- Community Property Spousal Joinder Requirement
- Home Equity Loan Constitutional Protections
- Strict Compliance Doctrine
Compressed Timeline, Elevated Risk
With 4 of 5 tracked metrics above national averages and non-judicial foreclosure, Texas homeowners face a compressed timeline if they fall behind. Non-judicial states can move from missed payment to sale in as few as 60–120 days — leaving less room to negotiate loss mitigation or find legal help. Texas's State Distress Index score of 56.7 (Elevated) reflects this combination of elevated delinquency and limited procedural protection.
CFPB Mortgage Complaints in Texas
The Consumer Financial Protection Bureau has received 27,249 mortgage complaints from Texas since 2012 — 89.3 per 100,000 residents, below the national rate of 129.3 per 100K. Texas ranks #29 of 51 jurisdictions for complaint density.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Complaints | 1,647 | 2,002 | 1,716 | 1,914 | 1,731 | 2,376 |
Source: CFPB Consumer Complaint Database. Filed a mortgage complaint? Search the complaint database.
Bankruptcy Filings: Texas
Bankruptcy filings reflect the downstream consequence of sustained financial distress — when households exhaust savings, fall behind on debt, and run out of alternatives. Texas's filing rate is below 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: Texas
The Philadelphia Fed Consumer Credit Explorer tracks credit health metrics from Equifax data. 21.2% of Texas residents have debt in collections — above the national rate of 13.9%. 22.4% have subprime credit scores (below 620), and 45.0% are credit-constrained.
Source: Philadelphia Fed Consumer Credit Explorer. Data from NY Fed Consumer Credit Panel / Equifax. 2025 Q1.
Economic Context: Texas
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: Texas
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. Texas scores 30.9 out of 100 (Weak), ranking #46 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 Texas?
The credit card delinquency rate in Texas is 14.2% as of Q4 2025, ranking #4 among all states and DC. The national average is 12.4%. This rate has risen from 9.2% in 2019.
How does Texas's household debt compare to the national average?
Texas residents carry $60,020 in total debt per capita, below the national average of $63,200. Debt per capita has grown 32.5% since 2019. Texas ranks #24 nationally for total household debt per capita.
What is the auto loan delinquency rate in Texas?
Auto loan delinquency in Texas stands at 5.8% as of Q4 2025, above the national rate of 5.2%. This ranks #14 nationally. The rate was 5.8% in 2019.
What type of foreclosure process does Texas use?
Texas primarily uses non-judicial foreclosure. This allows lenders to foreclose without court proceedings, resulting in a faster process. See our full Texas foreclosure law guide for timelines, protections, and legal resources.
Is Texas above or below the national average for financial distress?
Texas scores 56.7 on the State Distress Index (Elevated), ranking #13 of 51 jurisdictions. This composite score is built from 6 data dimensions: debt delinquency rates, SNAP enrollment, bankruptcy filings, unemployment, CFPB complaints, and safety net strength. The national American Distress Index reads 59.0 (Elevated).
How many CFPB mortgage complaints have been filed in Texas?
The CFPB has received 27,249 mortgage complaints from Texas since 2012, a rate of 89.3 per 100,000 residents. This ranks #29 of 51 jurisdictions. The national average is 129.3 per 100K. Companies responded to 98.1% of Texas complaints within the required timeframe.
What is the bankruptcy filing rate in Texas?
Texas had 38,066 bankruptcy filings in the 12-month period ending Dec 2025, a rate of 124.8 per 100,000 residents — below the national rate of 169.1 per 100K. This ranks #29 of 51 jurisdictions. Chapter 7 filings account for 58.7% and Chapter 13 for 35.6%. Filings changed +26.1% year-over-year.
What percentage of people in Texas have debt in collections?
21.2% of individuals in Texas have debt in collections, above the national rate of 13.9%. This ranks #2 of 51 jurisdictions. Additionally, 22.4% of Texas 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 Texas?
3,369,196 residents of Texas receive SNAP benefits, an enrollment rate of 10.9% — below the national rate of 11.9%. This ranks #26 of 51 jurisdictions. SNAP participation has changed -3.7% year-over-year. The pre-pandemic rate was 10.5%.
How strong is Texas's financial safety net?
Texas scores 30.9 out of 100 on the Safety Net Index, ranking #46 of 51 jurisdictions (Weak). The score combines Medicaid coverage (14.6% enrollment rate, non-expansion state), SNAP enrollment (10.9%), Homeowner Assistance Fund status (unknown), and foreclosure legal protections. The national average is 49.3.
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 statistically derived components. National score as of the latest available quarter.
Texas Foreclosure Statutes
State foreclosure law data compiled from primary statutory sources and validated against legal databases. Last verified 2026-03-05.
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.