Chicago, Illinois ranks as the city with the highest number of individuals facing financial distress, according to a recent report from a personal finance website. The analysis considered various indicators of financial duress, such as bankruptcy filings, credit scores, and accounts in forbearance due to financial difficulties. In addition, the study looked at the frequency of internet searches for terms like “debt” and “loans” to gauge financial concerns among residents.
Houston, Texas also emerged as a city with a significant population experiencing financial distress, following closely behind Chicago in the rankings. New York and Los Angeles were among the top four cities with the most residents facing financial challenges according to the report. Conversely, Boise, Idaho was noted as having the fewest citizens in financial peril among the cities studied.
Researchers emphasized rates of distress rather than raw numbers to account for variations in the size of each city. The study comes at a time when Americans are increasing their spending, borrowing more, and saving less. In fact, credit card debt reached a record high of $1.13 trillion, while the personal savings rate has dropped significantly.
The rise in inflation, coupled with increasing interest rates, is putting a strain on urban consumers in various cities highlighted in the report. Actions taken by the Federal Reserve to address inflation concerns have led to a noticeable increase in short-term interest rates. This has led to financial challenges for many individuals, pushing them towards using credit cards and loans to bridge the financial gap.
Chicago and Houston, in particular, have seen a surge in online searches related to loans and debt relief. Recent data shows a substantial increase in the number of residents with accounts in financial distress, with many seeking forbearance or deferral options. Despite the challenges, experts note that an increasing number of individuals are seeking assistance and actively looking for solutions to their financial difficulties.
The study revealed that a significant portion of Houston’s population is searching for loans or relief from debt, with over 8% of residents facing financial distress. Among the top ten cities with residents encountering financial issues, New York, Los Angeles, Dallas, Las Vegas, San Antonio, Atlanta, Riverside, and Jacksonville were also highlighted for various financial challenges among their populations.
Overall, the findings shed light on the economic pressures facing individuals in cities across the United States, emphasizing the need for proactive financial management and support systems to help those in financial distress.