Iowa and Illinois On The List of Cities with the Most People In Financial Distress
The last few years have been a wild ride for our bank accounts. Between prices at the grocery store skyrocketing and the constant worry about job stability, many families across the Midwest are feeling the squeeze. But according to a massive new study, where you live might be the biggest factor in whether you’re drowning in debt or keeping your head above water.
A recent report by WalletHub took a deep dive into the 100 largest cities in the U.S. to find out who is actually in "financial distress." They looked at everything from credit scores to how many people are falling behind on their bills. The results? One neighboring city is officially the hardest-hit in the country.
Chicago Takes the Unwanted Top Spot
If you’re living in Chicago, the news isn't great. The "Windy City" has officially blown past every other major city to rank #1 for financial distress. While the skyline looks as beautiful as ever, the reality for many residents is a struggle to keep up with payments.
In this study, "financial distress" means more than just being short on cash; it means people are having to ask for "forbearance" or deferred payments. Essentially, they are in a spot where they’ve told their bank, "I can't pay you right now," and the bank has temporarily agreed to wait. From high inflation to the rising cost of housing, Chicagoans are searching for "debt" and "loans" on Google at record-breaking levels.
Des Moines Proves "Iowa Tough"
On the flip side, if you’re reading this from a porch in Des Moines, you can breathe a little easier. While the big cities are crumbling under credit card debt, Des Moines landed at #93 on the list.
Ranking near the very bottom (in a good way) means that people in the heart of Iowa are doing a much better job of managing their money despite the national chaos. With higher average credit scores and fewer people falling behind on their monthly bills, Des Moines is standing tall as one of the most financially stable places to live in the entire country.
What Is Really Dragging People Down?
So, how did the gap between Illinois and Iowa get so wide? The researchers looked at nine key "red flags," including:
- Average Credit Scores: High scores usually mean a city is staying on top of its debt.
- Bankruptcy Filings: A spike in people filing for bankruptcy is a major warning sign of trouble.
- Search Trends: Are people frantically Googling "how to get a loan"?
Whether you’re in the middle of the Chicago crunch or the Des Moines calm, one thing is clear: the economy is hitting everyone differently. While some cities are finding ways to thrive, others are just one missed paycheck away from a real crisis.