WalletHub released a study ranking U.S. states by financial distress, with Florida, Texas, and South Carolina among the hardest hit. The study found rising bankruptcy filings and lower credit scores across these states — a sign that households are struggling with debt as economic pressure persists into mid-2026. U.S. bankruptcies actually hit a 16-year high in the first half of 2026, though credit markets tightened unexpectedly as distressed-debt funds accumulated capital to buy troubled assets.