Do You Live In the US City With the Most Financial Distress?
In some places, more residents are falling behind on bills, carrying distressed debt or filing for bankruptcy than in others.
An analysis from WalletHub found that Chicago, Houston and Las Vegas had the highest levels of financial distress among the nation's 100 largest cities.
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Higher levels of financial stress can create ripple effects throughout a local economy, influencing everything from housing decisions to job opportunities and household budgets. Here's what to know if your city made the list.
Check Housing Programs
Residents of financially distressed cities may have access to down-payment assistance, home repair grants and low-interest rehabilitation loans.
Those programs can help reduce housing costs and make homeownership more affordable.
Housing costs remain a challenge nationwide. Harvard University's Joint Center for Housing Studies found that a record 22.6 million renter households spent more than 30% of their income on housing.
Review Property Taxes
Before buying a home, review current property tax records and look for any planned tax increases.
A home that looks like a bargain today could cost much more than expected once tax bills start arriving.
In some financially distressed communities, local governments may face pressure to raise revenue through property taxes and fees. According to the Tax Foundation, effective property tax rates vary widely across the country.
Shop Beyond Convenience
Grocery prices can vary more than many shoppers realize.
According to Instacart, the average recommended monthly grocery budget is $427.63 per person, though costs differ widely by state and region.
In financially distressed cities, convenience can come at a premium. Shopping exclusively at the closest store may mean paying more than necessary. Comparing prices at a discount grocer, warehouse club or local market could uncover meaningful savings on staples purchased every week.
Check Commuter Benefits
Some employers offer subsidized transit passes, pretax commuting programs and other transportation perks.
Those benefits can help offset commuting costs if fares rise or service changes make getting around more expensive.
Financial pressure doesn't just affect households. It can also strain city budgets, leading to higher transit costs or reduced service.
Even cities that rank relatively low for financial distress can face transportation challenges. City officials in San Francisco, which ranked 72nd on WalletHub's list, have warned about potential transit service cuts without additional funding, per the San Francisco Chronicle.
Get Out Locally
Volunteer groups, hobby clubs, recreational sports leagues and community events can be good places to make professional connections.
One Reddit user said they skipped networking events altogether and met people through activities they genuinely enjoyed, including local pizza crawls.
That approach can be especially valuable in financially distressed cities, where job openings may be harder to find and competition can be tougher.
Building connections through shared interests can lead to referrals, recommendations and opportunities that never make it to a job board.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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