Alabama Financial Distress Profile
Household debt and delinquency, bankruptcy filings, unemployment, foreclosure law and county distress scores for Alabama and its 67 counties, from federal sources, each shown beside the U.S. figure.
· Data from Federal Reserve Bank of New York, Consumer Financial Protection Bureau, U.S. Bureau of Labor Statistics, Administrative Office of the U.S. Courts, Q4 2025
Behind on your mortgage in Alabama? See your options under Alabama law →
Alabama ranks #15 of 51 jurisdictions on the State Distress Index, in the second-most distressed fifth: its score of 72 means it is more distressed than 72% of the 50 states and D.C.. County Distress Index details are listed separately for its 67 counties.
How Does Alabama Compare With the U.S.?
Alabama is above the U.S. figure on 2 of 5 household debt measures from the Federal Reserve Bank of New York for Q4 2025: auto loan delinquency (6.5%) and mortgage delinquency (1.15%). Credit card delinquency is 12.2%, 0.2 percentage points below the U.S. 12.4%; total debt per adult with a credit file is $48,910, $14,290 below the U.S. $63,200.
Credit card delinquency in Alabama is up 3.8 percentage points from 8.4% in Q4 2019, and total debt per adult with a credit file is 28.7% higher than in Q4 2019.
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 State Distress Index score rose from 70 to 74 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 47.0 (Typical). The composite itself sits higher than 44% of all published quarters since 2005. Alabama's State Distress Index of 72 (high state distress) is computed from 4 equal-weighted domains covering delinquency, default and legal signals, housing-basis debt burden, and labor.
Alabama and the U.S.
Delinquency rates measure balances 90 or more days past due as a share of total balances in each loan category. Higher rates signal greater household financial stress. Debt and balance figures are per adult with a credit file, not per resident.
Download all states (CSV)Alabama and the U.S.: 5 Household Debt Measures (Q4 2025)
Source: NY Fed Consumer Credit Panel / Equifax, Q4 2025.
Similar States by Distress Level
The states ranked closest to Alabama (#15) on the State Distress Index, with the domain that scores highest in each.
| State | SDI Score | Score Label | Highest Domain |
|---|---|---|---|
| Alabama | 72 | high state distress | Default & Legal |
| Arizona | 76 | high state distress | Labor |
| District of Columbia | 74 | high state distress | Labor |
| Kentucky | 70 | high state distress | Default & Legal |
Change Since 2019
Q4 2019, the last fourth quarter before the pandemic, is the baseline. Credit card delinquency is higher than in Q4 2019 in 51 of 51 jurisdictions, and auto loan delinquency is higher in 33.
| Metric | Q4 2019 | Q4 2025 | Change | U.S. Q4 2025 |
|---|---|---|---|---|
| Credit Card Delinquency | 8.4% | 12.2% | +3.8 percentage points | 12.4% |
| Auto Loan Delinquency | 6.6% | 6.5% | No change | 5.2% |
| Mortgage Delinquency | 0.88% | 1.15% | +0.27 percentage points | 0.94% |
| Total Debt per Adult With a Credit File | $38,000 | $48,910 | +28.7% | $63,200 |
| Card Balance per Adult With a Credit File | $2,550 | $3,400 | +33.3% | $4,350 |
Alabama Foreclosure Law Summary
If you fall behind on mortgage payments, the steps and deadlines depend on state law. Alabama mainly uses non-judicial foreclosure, which a lender can carry out without going to court.
Alabama foreclosures almost always proceed without court involvement, using the power of sale clause in the mortgage (Ala. Code § 35-10-12). Judicial foreclosure is available (Ala. Code § 35-10-1 et seq.) but rarely used.
- Post-sale redemption: 180 days after the sale for a home on which a homestead exemption was claimed for the tax year of the sale, or one year after the sale for other property (Ala. Code § 6-5-248(b)). For homestead property, the period does not start until the required 30-day notice is given, but redemption can never happen later than one year after the sale. A former owner who does not hand over possession within 10 days of the buyer's written demand loses the right to redeem (Ala. Code § 6-5-251).
How Alabama Sits Among the States
Alabama's credit card delinquency rate is 12.2%, 0.2 percentage points below the U.S. 12.4%, and ranks #16 of 51. 2 of 5 NY Fed household debt measures are above the U.S. figure, and the State Distress Index reads 72 (high state distress). The Household Debt by State roundup covers 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 77.5: on average, Alabama's counties are more distressed than 77% of U.S. counties. Across all 3,144 counties the average is 50.0, the middle of the scale.
Score Label Distribution
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Most Distressed Counties
| County | Score | Score Label | Top Driver |
|---|---|---|---|
| Dallas County | 99 | extreme county distress | Delinquency |
| Wilcox County | 99 | extreme county distress | Default & Legal |
| Greene County | 99 | extreme county distress | Default & Legal |
| Perry County | 99 | extreme county distress | Default & Legal |
| Russell County | 98 | extreme county distress | Default & Legal |
Dallas County ranks #4 most distressed nationally out of 3,144 counties.
Least Distressed Counties
| County | Score | Score Label | Top Domain |
|---|---|---|---|
| Shelby County | 23 | low county distress | Default & Legal |
| Madison County | 38 | low-moderate county distress | Default & Legal |
| Limestone County | 39 | low-moderate county distress | Default & Legal |
| Baldwin County | 44 | moderate-low county distress | Default & Legal |
| Elmore County | 45 | moderate-low county distress | Default & Legal |
The most distressed county in Alabama is Dallas County (99, extreme county distress); the least distressed is Shelby County (23, low county distress).
Explore all 67 Alabama counties →CFPB Mortgage Complaints in Alabama
The Consumer Financial Protection Bureau has received 4,352 mortgage complaints from Alabama since 2012, 85.2 per 100,000 residents, 49.8 below the U.S. rate of 135. Alabama ranks #34 of 51 on complaints per resident.
| 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 filing rate is bankruptcy cases filed in a year, from the Administrative Office of the U.S. Courts, per 100,000 residents. It does not identify household causes, motives, assets, income, or case outcomes. Alabama's rate of 404.0 is 234.9 above the U.S. rate of 169.1.
Source: U.S. Courts, Administrative Office. Table F-2: Cases Commenced by Chapter. Per-capita rates use 2024 U.S. Census Bureau population estimates.
Credit Distress: Alabama
The Federal Reserve Bank of Philadelphia's Consumer Credit Explorer reports credit health from NY Fed / Equifax credit records. 20.0% of people with a credit file in Alabama have debt in collections, 6.1 percentage points above the U.S. average 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. Q1 2025. The U.S. average is weighted by state population (our calculation).
Economic Context: Alabama
SNAP enrollment and unemployment give context for the debt figures above. The unemployment rate measures joblessness among people in the labor force. SNAP enrollment reflects each state's program rules and reach as well as need, which is why it is not part of the State Distress Index.
Sources: U.S. Department of Agriculture 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 37.6 out of 100 (Weak), ranking #37 of 51 jurisdictions.
Component Breakdown
Sources: Kaiser Family Foundation (Medicaid, 2024), USDA FNS (SNAP, June 2026), 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 the 51 states and DC, 0.2 percentage points below the U.S. 12.4%. It is up 3.8 percentage points from 8.4% in Q4 2019.
How does Alabama's household debt compare with the U.S.?
The NY Fed reports a $48,910 total debt balance per adult with a credit file in Alabama, $14,290 below the U.S. $63,200 on the same basis. That is 28.7% higher than in Q4 2019. Alabama ranks #41 on that basis.
What is the auto loan delinquency rate in Alabama?
Auto loan delinquency in Alabama is 6.5% as of Q4 2025, 1.4 percentage points above the U.S. 5.2%. This ranks #4 of 51. The rate is the same as in Q4 2019.
What type of foreclosure process does Alabama use?
Alabama mainly uses non-judicial foreclosure, which a lender can carry out without going to court. See our Alabama foreclosure guide for the timeline, homeowner protections and where to get free help.
What is Alabama's State Distress Index score?
Alabama scores 72 on the State Distress Index (high state distress), which means it is more distressed than 72% of the 50 states and D.C.. It ranks #15 of 51 jurisdictions, in the second-most distressed fifth. The score is built from 4 equal-weighted domains: delinquency, default and legal, debt burden on a housing basis, and labor. It ranks states against each other at one time. Separately, the national American Distress Index reads 47.0 (Typical) for the country over time. The composite itself sits higher than 44% of all published quarters since 2005.
How many CFPB mortgage complaints have been filed in Alabama?
The CFPB has received 4,352 mortgage complaints from Alabama since 2012, 85.2 per 100,000 residents, 49.8 below the U.S. rate of 135. That ranks #34 of 51. Companies responded to 97.6% of Alabama complaints on time.
What is the bankruptcy filing rate in Alabama?
Alabama had 20,636 bankruptcy filings in the 12-month period ending Dec 2025, 404.0 per 100,000 residents, 234.9 above the U.S. rate of 169.1. This ranks #1 of 51. Chapter 7 filings account for 28.7% and Chapter 13 for 70.8%. That is 7.9% more filings than in 2024.
What percentage of people in Alabama have debt in collections?
20.0% of people with a credit file in Alabama have debt in collections, 6.1 percentage points above the U.S. average of 13.9%. This ranks #4 of 51. 23.6% have subprime credit scores (below 620), 6.7 percentage points above the U.S. average of 16.9%. Data from the Federal Reserve Bank of Philadelphia Consumer Credit Explorer (NY Fed / Equifax), Q1 2025.
What is the SNAP enrollment rate in Alabama?
648,952 residents of Alabama received SNAP benefits in June 2026, an enrollment rate of 12.7%, 1.9 percentage points above the U.S. rate of 10.8%. This ranks #11 of 51. That is 11.5% fewer people than in June 2025. The rate is 1.2 percentage points below the October 2019 to February 2020 average.
How strong is Alabama's financial safety net?
Alabama scores 37.6 out of 100 on the Safety Net Index, ranking #37 of 51 (Weak). The score combines Medicaid coverage (19.4% enrollment rate, non-expansion state), SNAP enrollment (12.7%), and foreclosure legal protections. That is below the state average of 43.6.
Which Alabama counties have the highest financial distress?
Dallas County is the most distressed county in Alabama with a County Distress Index score of 99 · extreme county distress, ranking #4 nationally out of 3,144 counties. Wilcox County (99 · extreme county distress), Greene County (99 · extreme county distress), Perry County (99 · extreme county distress) are next. Shelby County is the least distressed at 23 · low county distress. See all 67 counties at /counties/alabama/.
How long can foreclosure take in Alabama?
Alabama mainly uses non-judicial foreclosure, which a lender can carry out without going to court. The timeline varies by county and case. Homestead exemption: $18,800 (Ala. Code § 6-10-2, as adjusted for inflation by the State Treasurer). A resident who is 62 or older or has a disability can claim up to $56,400. This does NOT stop mortgage foreclosure — it only protects equity from unsecured judgment creditors. Full details at /help/foreclosure/alabama/.
Where does Alabama rank for financial distress?
Alabama scores 72 on the State Distress Index (high state distress), which means it is more distressed than 72% of the 50 states and D.C.. It ranks #15 of 51 jurisdictions, in the second-most distressed fifth. 2 of 5 NY Fed household debt measures are above the U.S. figure. The State Distress Index domain with the highest score is Default & Legal. County Distress Index details are listed separately by county. The safety net ranks #37 (Weak), a state that has not expanded Medicaid.
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. Published once a year with fourth-quarter figures.
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 (latest month), and state foreclosure legal protections.