Melissa Donovan
Americans have faced significant financial challenges over the years including high unemployment rates and inflation. Even though the economy has shown signs of improvement, financial distress remains a concern for numerous individuals. Financial distress, as defined by WalletHub, occurs when a credit account is in forbearance or has deferred payments, meaning the account holder has received temporary relief from making payments due to financial hardship.
Orlando Ranks Among the Most Financially Distressed Cities
A recent WalletHub study analyzed 100 of the largest U.S. cities to determine where financial struggles are most prevalent. The study considered factors such as average credit scores, changes in bankruptcy filings between December 2023 and December 2024, and the percentage of residents with distressed accounts.
Orlando ranked sixth overall in financial distress with a total score of 65.32. The city has the highest percentage of residents with accounts in distress compared to other cities, highlighting the financial challenges faced by many Orlando residents. Additionally, Orlando ranks within the top 25% for online searches related to “debt” and “loans,” indicating a high level of concern about financial stability among its population. In terms of average credit scores, Orlando ranks 47th.
Financial Struggles Across Florida Cities
Other major Florida cities also ranked high in financial distress. Jacksonville placed third on the list, with nearly 16% of its residents experiencing financial distress—the highest percentage in the country. Tampa ranked eighth, while Miami placed ninth, further underscoring the widespread financial difficulties affecting Floridians.
Tips for Overcoming Financial Distress
For individuals facing financial hardship, WalletHub offers several recommendations:
- Consider Hardship Programs – Creditors often offer hardship programs that allow temporary reductions or deferments in monthly payments.
- Debt Management – Negotiating better terms with creditors can lead to lower monthly payments or reduced interest rates.
- Avoid Predatory Solutions – Be cautious of debt settlement companies and payday lenders, as their services often come with hidden costs and long-term negative consequences.
- Consolidate Debt – A debt consolidation loan or balance transfer credit card may help lower interest rates and simplify repayment.
- Budget Carefully – Cutting non-essential expenses and focusing on paying down debt can improve financial stability over time.
Study Methodology
WalletHub evaluated the 100 largest U.S. cities without data limitations using nine key metrics across six categories:
- Credit Scores
- Percentage of People with Accounts in Distress
- Average Number of Accounts in Distress
- Change in Bankruptcy Filings (December 2024 vs. December 2023)
- “Debt” Search Interest Index
- “Loans” Search Interest Index
Each city received a weighted average score based on these metrics, leading to an overall ranking.
Orlando’s high ranking in financial distress highlights the challenges many residents continue to face. As financial pressures persist, individuals must explore responsible financial management strategies to regain stability. By utilizing available resources, budgeting wisely, and avoiding predatory lending practices, Orlando residents can work toward financial recovery.
For a broader perspective on financial distress across states, you can explore WalletHub’s full report here.
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