Texas Financial Distress Profile
Composite distress data for 254 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
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Texas ranks #8 nationally for household financial distress. County Distress Index details are listed separately for its 254 counties. The national State Distress Index average is 50.0.
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
Movement since 2006
Since 2006, Texas has climbed from the 10th-most distressed jurisdiction to the 7th-most distressed, as of 2025 Q1. Its composite State Distress Index score rose from 68.5 to 70.7 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. Texas's State Distress Index of 70.2 (high state distress) is computed from 4 equal-weighted domains covering delinquency, default and legal signals, housing-basis debt burden, and labor.
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 (#8) 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, Higher Risk
With 4 of 5 tracked metrics above national averages and non-judicial foreclosure, Texas homeowners face a compressed timeline if they fall behind. In non-judicial states, the bank can move from missed payment to sale in as little as 60 to 120 days — leaving less room to negotiate loss mitigation or find legal help. Texas's State Distress Index score of 70.2 (high state distress) reflects this combination of higher delinquency and limited procedural protection.
Distress by County
The County Distress Index scores every county in Texas on a 0-100 scale using five equal-weighted domains: delinquency, default and legal, debt burden, labor, and safety net and buffer. Texas's 254 counties average 59.5 — above the national county mean of 50.0.
Score Label Distribution
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Most Distressed Counties
| County | Score | Score Label | Top Driver |
|---|---|---|---|
| Starr County | 84.4 | very high county distress | Labor |
| Jim Wells County | 80.9 | very high county distress | Delinquency |
| Willacy County | 80.7 | very high county distress | Labor |
| San Augustine County | 80.5 | very high county distress | Safety Net & Buffer |
| Bee County | 80.2 | very high county distress | Delinquency |
Starr County ranks #60 most distressed nationally out of 3,144 counties.
Least Distressed Counties
| County | Score | Score Label | Top Domain |
|---|---|---|---|
| Hartley County | 25.0 | low county distress | Delinquency |
| Lipscomb County | 28.1 | low county distress | Safety Net & Buffer |
| Gillespie County | 28.5 | low county distress | Debt Burden (housing basis) |
| Glasscock County | 31.7 | low-moderate county distress | Delinquency |
| King County | 32.7 | low-moderate county distress | Delinquency |
The gap between Texas's most and least distressed counties is 59.4 points — Starr County (84.4, very high county distress) vs. Hartley County (25.0, low county distress). That spread reveals two very different economic realities within the same state.
Explore all 254 Texas counties →CFPB Mortgage Complaints in Texas
The Consumer Financial Protection Bureau has received 28,590 mortgage complaints from Texas since 2012 — 93.7 per 100,000 residents, below the national rate of 133.2 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 | 2,384 |
Source: CFPB Consumer Complaint Database. Filed a mortgage complaint? Search the complaint database.
Bankruptcy Filings: Texas
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. 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 29.4 out of 100 (Minimal), ranking #47 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 70.2 on the State Distress Index (high state distress), ranking #8 of 51 jurisdictions. That is 20.2 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 Texas?
The CFPB has received 28,590 mortgage complaints from Texas since 2012, a rate of 93.7 per 100,000 residents. This ranks #29 of 51 jurisdictions. The national average is 133.2 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?
2,971,767 residents of Texas receive SNAP benefits, an enrollment rate of 9.6% — below the national rate of 10.9%. This ranks #30 of 51 jurisdictions. SNAP participation has changed -14.6% year-over-year. The pre-pandemic rate was 10.5%.
How strong is Texas's financial safety net?
Texas scores 29.4 out of 100 on the Safety Net Index, ranking #47 of 51 jurisdictions (Minimal). The score combines Medicaid coverage (14.6% enrollment rate, non-expansion state), SNAP enrollment (9.6%), Homeowner Assistance Fund status (unknown), and foreclosure legal protections. The national average is 47.8.
Which Texas counties have the highest financial distress?
Starr County is the most distressed county in Texas with a County Distress Index score of 84.4 · very high county distress, ranking #60 nationally out of 3,144 counties. Jim Wells County (80.9 · very high county distress), Willacy County (80.7 · very high county distress), San Augustine County (80.5 · very high county distress) round out the top distressed counties. Hartley County is the least distressed at 25.0 · low county distress. See all 254 counties at /counties/texas/.
How long can foreclosure take in Texas?
Texas uses non-judicial foreclosure, which allows lenders to foreclose without court proceedings. In Texas, the bank can foreclose in roughly 41–180 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: At least 20 days from the date the default notice is sent.. The homestead exemption is $10. Full details at /help/foreclosure/texas/.
Where does Texas rank for financial distress?
Texas scores 70.2 on the State Distress Index (high state distress), ranking #8 of 51 jurisdictions. 4 of 5 key metrics exceed national averages. The highest SDI domain is Delinquency. County Distress Index details are listed separately by county. The safety net ranks #47 (Minimal) — 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.
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.