Which States Have the Most Financial Distress?

District of Columbia has the highest State ADI score at 76.0 (Serious Stress), followed by Nevada (66.0), Georgia (64.9), Louisiana (64.5), and Florida (62.8). These five jurisdictions share elevated delinquency rates across credit cards, auto loans, and mortgages, combined with high bankruptcy filing rates and above-average CFPB complaint volumes.

At the other end, Idaho (38.1), Montana (37.0), and North Dakota (34.6) show the least distress. The 37.9-point gap between the most and least distressed jurisdictions underscores how unevenly household financial stress distributes across the country.

At a Glance

76.0 Highest: District of Columbia (Serious Stress) State ADI · 51 jurisdictions
38.1 Lowest: Idaho (Normal) State ADI · 51 jurisdictions
24 States in Elevated zone (50–65) 47% of all jurisdictions
2 States in Serious Stress zone (65–80) Highest concentration of distress
50.4 Median State ADI score Cross-sectional mean: 50.0
9.6 Standard deviation across states Score range: 34.5–76.0

The national American Distress Index currently reads 59.0 (Elevated). The national ADI tracks distress over time using a 2015–2024 baseline. The State ADI compares states to each other at a single point in time, revealing where household distress is concentrating geographically. Both use the same zone thresholds. See the interactive state map for a visual overview, or compare individual state foreclosure timelines alongside their distress scores.

All 51 Jurisdictions Ranked

State ADI scores for every state and DC, ranked from highest distress to lowest. Zone colors match the national ADI thresholds: Healthy (<35, green), Normal (35–50, blue), Elevated (50–65, yellow), Serious Stress (65–80, orange).

State ADI Scores — All 51 Jurisdictions

Source: American Default State ADI composite · 2026-03-22

What's Driving the Worst Scores

Each state's score reflects six weighted components. The chart below breaks down the top 10 most distressed states by component contribution — showing whether distress is concentrated in debt performance, economic need, legal filings, labor markets, complaint activity, or weak safety nets.

Component Breakdown — Top 10 Most Distressed States

Components: Debt Stress 30%, Economic Need 20%, Legal Filings 15%, Labor Market 15%, Consumer Complaints 10%, Safety Net Gap 10%

Zone Distribution

The cross-sectional design centers scores at 50, so the median state falls near the Normal/Elevated boundary. The distribution reflects relative positioning, not absolute crisis levels — a "Normal" state may still have indicators that would look distressed in isolation.

Regional Analysis

Financial distress clusters geographically. The South leads with an average State ADI of 56.6 — 12 of 14 states in Elevated or Serious Stress. The Midwest averages 44.6. For a deeper analysis of what drives these geographic patterns — including the Deep South and Sun Belt corridors — see the State ADI rankings analysis.

Average State ADI by Region

Regions use Census Bureau definitions · DC included in Northeast

Region States Avg Score Elevated+ Most Distressed
South 14 56.6 12 Georgia (64.9)
Northeast 12 50.7 6 District of Columbia (76.0)
West 13 47.2 5 Nevada (66.0)
Midwest 12 44.6 3 Illinois (57.3)

Worst States by Component

Different states struggle on different dimensions. Below are the five worst-scoring states on each of the six State ADI components. A state ranking high on multiple components suggests broad-based systemic distress; one ranking high on a single component may have a specific, identifiable vulnerability.

Debt Stress (30%)

CC, mortgage, auto delinquency

StateZ-Score
Louisiana+1.79
Mississippi+1.60
Florida+1.49
Nevada+1.46
Georgia+1.27

Economic Need (20%)

SNAP enrollment rate

StateZ-Score
New Mexico+2.68
District of Columbia+2.51
Oregon+1.65
Georgia+1.48
Louisiana+1.44

Legal Filings (15%)

Bankruptcy per 100K

StateZ-Score
Alabama+3.03
Mississippi+2.14
Tennessee+1.79
Nevada+1.67
Georgia+1.55

Labor Market (15%)

Unemployment rate

StateZ-Score
District of Columbia+3.04
California+1.67
New Jersey+1.56
Delaware+1.33
Nevada+1.33

Consumer Complaints (10%)

CFPB complaints per 100K

StateZ-Score
District of Columbia+3.84
Maryland+2.52
New Jersey+1.66
Delaware+1.61
Georgia+1.46

Safety Net Gap (10%)

Weak protections + programs

StateZ-Score
Utah+1.98
Kansas+1.94
Wyoming+1.94
New Hampshire+1.46
South Dakota+1.34

The Geographic Default Pattern

Two corridors of elevated distress emerge from the data. The Deep South corridor — Mississippi, Louisiana, Alabama, Georgia — combines high delinquency rates with high SNAP enrollment and weak safety nets. The Sun Belt corridor — Nevada, Florida, Texas — shows distress driven more by debt stress and consumer complaints, reflecting rapid population growth outpacing financial resilience. The states in the Healthy zone share a different profile: low delinquency, strong safety nets, and above-average labor markets.

Read more: The Two-Economy Problem →

Full State Rankings

All 51 jurisdictions with composite score, zone, and all six component Z-scores. Click a state name to see its full distress profile, indicator data, and foreclosure law summary.

Rank State Score Zone Debt Econ Legal Labor CFPB Safety
1 District of Columbia 76.0 Serious +1.21 +2.51 -0.84 +3.04 +3.84 -0.51
2 Nevada 66.0 Serious +1.46 +0.65 +1.67 +1.33 +0.80 -1.55
3 Georgia 64.9 Elevated +1.27 +1.48 +1.55 -0.50 +1.46 -1.03
4 Louisiana 64.5 Elevated +1.79 +1.44 +0.80 +0.19 -0.22 -0.98
5 Florida 62.8 Elevated +1.49 +0.07 +0.40 +0.30 +1.43 +0.44
6 Mississippi 62.8 Elevated +1.60 +0.13 +2.14 -0.39 -0.83 +0.67
7 Delaware 62.1 Elevated +0.57 +0.16 +0.83 +1.33 +1.61 +0.27
8 California 59.8 Elevated +0.23 +0.64 -0.24 +1.67 +1.07 +0.59
9 Alabama 58.8 Elevated +0.64 +0.72 +3.03 -1.53 -0.57 +0.09
10 Oklahoma 57.9 Elevated +0.93 +1.33 +0.33 -0.50 -0.80 +0.25
11 Illinois 57.3 Elevated +0.34 +0.96 +0.64 +0.64 +0.16 -0.72
12 New York 56.7 Elevated +0.70 +0.92 -0.50 +0.64 +0.36 -0.59
13 Texas 56.7 Elevated +1.13 -0.06 -0.42 +0.30 -0.41 +1.30
14 Kentucky 56.6 Elevated +0.22 +0.50 +1.33 +0.53 -0.95 +0.40
15 Michigan 56.1 Elevated +0.09 +0.95 +0.78 +1.10 -0.04 -1.35
16 Maryland 56.0 Elevated +0.38 -0.29 +0.51 +0.19 +2.52 -0.59
17 New Mexico 55.4 Elevated +0.37 +2.68 -1.00 +0.30 -0.46 -1.77
18 West Virginia 55.4 Elevated +0.88 +1.02 -0.72 +0.64 -1.00 -0.38
19 Arkansas 54.1 Elevated +0.90 -0.89 +0.85 +0.19 -0.94 +0.86
20 New Jersey 53.6 Elevated +0.07 -0.70 -0.08 +1.56 +1.66 -0.58
21 South Carolina 53.1 Elevated +0.91 -0.34 -0.77 +0.87 -0.10 -0.26
22 Pennsylvania 52.4 Elevated +0.39 +0.80 -0.64 +0.19 +0.08 -0.76
23 Ohio 52.3 Elevated +0.02 +0.18 +0.77 +0.53 -0.31 -0.67
24 Arizona 52.1 Elevated +0.72 -0.64 +0.14 +0.30 +0.30 -0.58
25 Oregon 51.5 Elevated -0.96 +1.65 +0.43 +1.33 +0.08 -2.27
26 Tennessee 50.4 Elevated -0.02 -0.33 +1.79 -0.50 -0.43 -0.53
27 Rhode Island 49.7 Normal -0.13 +0.21 -0.75 +0.30 +0.34 +0.13
28 Indiana 49.5 Normal +0.42 -0.80 +1.29 -0.61 -0.85 -0.14
29 North Carolina 48.6 Normal +0.43 +0.23 -0.84 -0.16 +0.16 -1.21
30 Missouri 47.6 Normal -0.00 -0.21 +0.15 -0.16 -0.48 -0.48
31 Washington 46.9 Normal -1.03 -0.07 -0.49 +0.76 +0.24 +0.77
32 Virginia 46.0 Normal -0.71 -0.42 +0.31 -0.50 +0.80 +0.07
33 Colorado 45.8 Normal -0.37 -0.31 -0.17 -0.27 +0.44 -0.51
34 Massachusetts 45.6 Normal -0.80 +0.85 -1.07 +0.87 +0.26 -1.88
35 Connecticut 44.4 Normal -0.46 -0.47 -0.71 +0.19 +0.73 -0.93
36 Kansas 43.9 Normal -0.40 -1.34 -0.21 -0.27 -0.95 +1.94
37 Utah 42.5 Normal -1.01 -1.68 +0.90 -0.50 -0.58 +1.98
38 Minnesota 41.5 Normal -1.30 -0.92 +0.24 +0.07 -0.46 +0.75
39 Iowa 41.3 Normal -0.61 -0.84 -0.52 -0.61 -1.17 +1.27
40 Alaska 40.8 Normal -0.90 -0.57 -1.57 +0.87 -0.76 +0.20
41 Maine 39.4 Normal -0.76 +0.04 -1.44 -0.96 -0.24 -0.18
42 Wyoming 39.3 Normal -0.58 -1.78 -0.76 -0.73 -0.72 +1.94
43 Wisconsin 38.6 Normal -1.50 +0.02 +0.17 -1.07 -0.63 -0.29
44 Nebraska 38.3 Normal -0.93 -1.07 -0.22 -1.18 -0.92 +1.04
45 Hawaii 38.2 Normal -0.83 +0.11 -0.94 -2.10 -0.07 -0.05
46 New Hampshire 38.2 Normal -0.97 -1.53 -1.14 -1.07 +0.85 +1.46
47 Idaho 38.1 Normal -0.91 -1.34 -0.46 -0.50 -0.78 +0.62
48 Montana 37.0 Normal -0.94 -1.23 -1.06 -0.73 -0.89 +1.18
49 North Dakota 34.6 Healthy -0.92 -1.10 -0.99 -1.64 -1.41 +1.23
50 South Dakota 34.5 Healthy -0.92 -0.90 -1.07 -2.10 -1.15 +1.34
51 Vermont 34.5 Healthy -1.22 -0.43 -1.43 -1.64 -0.06 +0.02

Frequently Asked Questions

Which state has the highest financial distress?

District of Columbia has the highest State ADI score at 76.0, placing it in the Serious Stress zone. Its distress is driven primarily by high debt stress (credit card, mortgage, and auto loan delinquency rates) and elevated CFPB complaint rates. Nevada (66.0) and Georgia (64.9) round out the top three.

Which state has the lowest financial distress?

Idaho has the lowest State ADI score at 38.1, in the Normal zone. Only 3 states currently score in the Healthy zone (below 35). These states share low delinquency rates across consumer credit categories and stronger safety net programs.

How is the State ADI calculated?

The State ADI uses cross-sectional Z-score normalization across all 51 jurisdictions. Six components are weighted: Debt Stress (30%), Economic Need (20%), Legal Filings (15%), Labor Market (15%), Consumer Complaints (10%), and Safety Net Gap (10%). Scores center at 50 — the median state falls near the Normal/Elevated boundary. Data sources include the NY Fed, BLS, USDA, U.S. Courts, and CFPB.

How does the State ADI differ from the national ADI?

The national ADI uses temporal Z-scores comparing current values to a 2015-2024 baseline — it tracks how distress changes over time. The State ADI uses cross-sectional Z-scores comparing states to each other at a point in time. The national ADI currently reads 59.0 (Elevated); state scores range from 34.5 to 76.0.

Which region has the highest average financial distress?

The South has the highest average State ADI score at 56.6, with 12 of 14 states in the Elevated or Serious Stress zones. Georgia (64.9) is the most distressed state in the region. The Midwest averages 44.6.

Data Sources

NY Fed Consumer Credit Panel

State-level credit card, auto loan, and mortgage delinquency rates. Quarterly data from a nationally representative 5% sample of Equifax credit reports.

BLS, USDA, U.S. Courts

State unemployment rates (LAUS), SNAP enrollment (FNS), and bankruptcy filings per 100K (Administrative Office). Updated monthly or annually.

CFPB, State Statutes, KFF

Mortgage complaint density per 100K, foreclosure legal protections scoring, Medicaid enrollment rates, and HAF program status. Multiple federal and state sources.

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