Is Your State Financially Distressed?
The State ADI ranks all 50 states and DC on six dimensions of household financial distress. Scores range from 34.3 (Hawaii) to 75.7 (District of Columbia). 20 jurisdictions score Elevated or above.
Last updated: 2026-04-16
Which States Have the Most Financial Distress?
District of Columbia has the highest State ADI score at 75.7 (Serious), followed by Nevada (66.0), Louisiana (65.7), Georgia (64.4), and Florida (63.1). 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, Hawaii (37.9), Montana (37.3), and Vermont (34.5) show the least distress. A 37.8-point gap. Same federal interest rates. Same inflation. Same labor market cycle. The gap is not about the economy getting worse — it is about the economy getting worse in specific places for specific structural reasons. American Default Research publishes the American Distress Index at both the national and state level, scoring all 51 jurisdictions across six components of household financial distress.
At a Glance
The national American Distress Index currently reads 64.4 (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 (54–70, yellow), Serious (70–85, orange).
State ADI Scores — All 51 Jurisdictions
American Default Research State ADI composite · 2026-04-16
What Is Driving the Highest Distress Scores?
Here is what I keep coming back to when looking at these breakdowns. Two states can have similar composite scores but arrive there through completely different mechanisms. One state scores high because of debt performance. Another because of economic need and a weak safety net. Same number, different crises, different policy responses. The component breakdown for the top 10 most distressed states shows where each score comes from — and why a single-number ranking, while useful, is only the beginning of the conversation.
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%
How Many States Are in Each Distress Zone?
The cross-sectional design centers scores at 50, so the median state falls near the Normal/Elevated boundary. This is worth understanding before interpreting the zones. A "Normal" score here does not mean a state is fine — it means it is doing better than most other states. Given that the national ADI reads 64.4 (Elevated), even the median-ranked state may have indicators that would look distressed in isolation. Relative positioning and absolute distress are different questions.
Which Regions Have the Most Financial Distress?
Financial distress clusters geographically, which makes sense when you think about the structural factors. The South leads with an average State ADI of 56.5 — 10 of 14 states in Elevated or Serious. The Midwest averages 44.7. These are not random clusters. The South combines weaker safety net programs, lower median wages, higher credit card delinquency, and faster population growth in states with thinner household financial buffers. The regional average is not a coincidence. It is a policy outcome. For a deeper analysis — 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 | 56.5 | 10 | Louisiana (65.7) |
| Northeast | 12 | 50.6 | 4 | District of Columbia (75.7) |
| West | 13 | 47.2 | 3 | Nevada (66.0) |
| Midwest | 12 | 44.7 | 3 | Illinois (57.9) |
Which States Score Worst on Each 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
| State | Z-Score |
|---|---|
| Louisiana | +1.79 |
| Mississippi | +1.60 |
| Florida | +1.49 |
| Nevada | +1.46 |
| Georgia | +1.27 |
Economic Need (20%)
SNAP enrollment rate
| State | Z-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
| State | Z-Score |
|---|---|
| Alabama | +3.03 |
| Mississippi | +2.14 |
| Tennessee | +1.79 |
| Nevada | +1.67 |
| Georgia | +1.55 |
Labor Market (15%)
Unemployment rate
| State | Z-Score |
|---|---|
| District of Columbia | +2.96 |
| California | +1.48 |
| Delaware | +1.48 |
| Nevada | +1.37 |
| New Jersey | +1.25 |
Consumer Complaints (10%)
CFPB complaints per 100K
| State | Z-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
| State | Z-Score |
|---|---|
| Utah | +1.94 |
| Kansas | +1.89 |
| Wyoming | +1.89 |
| New Hampshire | +1.42 |
| South Dakota | +1.29 |
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 | 75.7 | Serious | +1.21 | +2.51 | -0.84 | +2.96 | +3.84 | -0.56 |
| 2 | Nevada | 66.0 | Elevated | +1.46 | +0.65 | +1.67 | +1.37 | +0.80 | -1.60 |
| 3 | Louisiana | 65.7 | Elevated | +1.79 | +1.44 | +0.80 | +0.23 | -0.22 | -0.33 |
| 4 | Georgia | 64.4 | Elevated | +1.27 | +1.48 | +1.55 | -0.69 | +1.46 | -1.09 |
| 5 | Florida | 63.1 | Elevated | +1.49 | +0.07 | +0.40 | +0.45 | +1.43 | +0.39 |
| 6 | Delaware | 62.4 | Elevated | +0.57 | +0.16 | +0.83 | +1.48 | +1.61 | +0.22 |
| 7 | Mississippi | 62.3 | Elevated | +1.60 | +0.13 | +2.14 | -0.57 | -0.83 | +0.63 |
| 8 | California | 59.2 | Elevated | +0.23 | +0.64 | -0.24 | +1.48 | +1.07 | +0.54 |
| 9 | Alabama | 58.5 | Elevated | +0.64 | +0.72 | +3.03 | -1.60 | -0.57 | +0.05 |
| 10 | Oklahoma | 58.5 | Elevated | +0.93 | +1.33 | +0.33 | -0.23 | -0.80 | +0.20 |
| 11 | Illinois | 57.9 | Elevated | +0.34 | +0.96 | +0.64 | +0.91 | +0.16 | -0.77 |
| 12 | Texas | 56.5 | Elevated | +1.13 | -0.06 | -0.42 | +0.23 | -0.41 | +1.26 |
| 13 | New York | 56.4 | Elevated | +0.70 | +0.92 | -0.50 | +0.57 | +0.36 | -0.64 |
| 14 | Maryland | 56.0 | Elevated | +0.38 | -0.29 | +0.51 | +0.23 | +2.52 | -0.64 |
| 15 | Michigan | 55.8 | Elevated | +0.09 | +0.95 | +0.78 | +1.02 | -0.04 | -1.40 |
| 16 | Kentucky | 55.7 | Elevated | +0.22 | +0.50 | +1.33 | +0.23 | -0.95 | +0.35 |
| 17 | New Mexico | 55.7 | Elevated | +0.37 | +2.68 | -1.00 | +0.45 | -0.46 | -1.83 |
| 18 | West Virginia | 55.1 | Elevated | +0.88 | +1.02 | -0.72 | +0.57 | -1.00 | -0.43 |
| 19 | Ohio | 54.5 | Elevated | +0.02 | +0.18 | +0.77 | +0.23 | -0.31 | +1.05 |
| 20 | Arkansas | 54.4 | Elevated | +0.90 | -0.89 | +0.85 | +0.34 | -0.94 | +0.81 |
| 21 | South Carolina | 53.1 | Normal | +0.91 | -0.34 | -0.77 | +0.91 | -0.10 | -0.31 |
| 22 | New Jersey | 52.7 | Normal | +0.07 | -0.70 | -0.08 | +1.25 | +1.66 | -0.63 |
| 23 | Arizona | 52.4 | Normal | +0.72 | -0.64 | +0.14 | +0.45 | +0.30 | -0.63 |
| 24 | Pennsylvania | 52.4 | Normal | +0.39 | +0.80 | -0.64 | +0.23 | +0.08 | -0.81 |
| 25 | Oregon | 51.2 | Normal | -0.96 | +1.65 | +0.43 | +1.25 | +0.08 | -2.32 |
| 26 | Rhode Island | 50.0 | Normal | -0.13 | +0.21 | -0.75 | +0.45 | +0.34 | +0.08 |
| 27 | Tennessee | 49.9 | Normal | -0.02 | -0.33 | +1.79 | -0.69 | -0.43 | -0.58 |
| 28 | Indiana | 48.9 | Normal | +0.42 | -0.80 | +1.29 | -0.80 | -0.85 | -0.19 |
| 29 | North Carolina | 48.1 | Normal | +0.43 | +0.23 | -0.84 | -0.34 | +0.16 | -1.26 |
| 30 | Washington | 47.5 | Normal | -1.03 | -0.07 | -0.49 | +1.02 | +0.24 | +0.72 |
| 31 | Missouri | 47.4 | Normal | -0.00 | -0.21 | +0.15 | -0.23 | -0.48 | -0.53 |
| 32 | Virginia | 46.0 | Normal | -0.71 | -0.42 | +0.31 | -0.46 | +0.80 | +0.03 |
| 33 | Colorado | 45.8 | Normal | -0.37 | -0.31 | -0.17 | -0.23 | +0.44 | -0.56 |
| 34 | Connecticut | 45.0 | Healthy | -0.46 | -0.47 | -0.71 | +0.45 | +0.73 | -0.98 |
| 35 | Massachusetts | 45.0 | Normal | -0.80 | +0.85 | -1.07 | +0.68 | +0.26 | -1.93 |
| 36 | Kansas | 43.9 | Healthy | -0.40 | -1.34 | -0.21 | -0.23 | -0.95 | +1.89 |
| 37 | Utah | 42.9 | Healthy | -1.01 | -1.68 | +0.90 | -0.34 | -0.58 | +1.94 |
| 38 | Minnesota | 42.1 | Healthy | -1.30 | -0.92 | +0.24 | +0.34 | -0.46 | +0.70 |
| 39 | Iowa | 40.8 | Healthy | -0.61 | -0.84 | -0.52 | -0.80 | -1.17 | +1.22 |
| 40 | Alaska | 40.5 | Healthy | -0.90 | -0.57 | -1.57 | +0.80 | -0.76 | +0.15 |
| 41 | Wyoming | 39.6 | Healthy | -0.58 | -1.78 | -0.76 | -0.57 | -0.72 | +1.89 |
| 42 | Maine | 39.5 | Healthy | -0.76 | +0.04 | -1.44 | -0.91 | -0.24 | -0.23 |
| 43 | Wisconsin | 38.9 | Healthy | -1.50 | +0.02 | +0.17 | -0.91 | -0.63 | -0.34 |
| 44 | New Hampshire | 38.2 | Healthy | -0.97 | -1.53 | -1.14 | -1.03 | +0.85 | +1.42 |
| 45 | Idaho | 38.1 | Healthy | -0.91 | -1.34 | -0.46 | -0.46 | -0.78 | +0.58 |
| 46 | Nebraska | 38.0 | Healthy | -0.93 | -1.07 | -0.22 | -1.26 | -0.92 | +0.99 |
| 47 | Hawaii | 37.9 | Healthy | -0.83 | +0.11 | -0.94 | -2.17 | -0.07 | -0.10 |
| 48 | Montana | 37.3 | Healthy | -0.94 | -1.23 | -1.06 | -0.57 | -0.89 | +1.14 |
| 49 | Vermont | 34.5 | Healthy | -1.22 | -0.43 | -1.43 | -1.60 | -0.06 | -0.02 |
| 50 | North Dakota | 34.3 | Healthy | -0.92 | -1.10 | -0.99 | -1.71 | -1.41 | +1.19 |
| 51 | South Dakota | 34.3 | Healthy | -0.92 | -0.90 | -1.07 | -2.17 | -1.15 | +1.29 |
Frequently Asked Questions
Which state has the highest financial distress?
District of Columbia has the highest State ADI score at 75.7, placing it in the Serious 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 Louisiana (65.7) round out the top three.
Which state has the lowest financial distress?
Hawaii has the lowest State ADI score at 37.9, in the Healthy zone. Only 17 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 64.4 (Elevated); state scores range from 34.3 to 75.7.
Which region has the highest average financial distress?
The South has the highest average State ADI score at 56.5, with 10 of 14 states in the Elevated or Serious zones. Louisiana (65.7) is the most distressed state in the region. The Midwest averages 44.7.
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.