Study: Indiana, Kentucky among US states with most financial distress during pandemic
UNDATED (WKRC) - Indiana and Kentucky ranked in the top 20 of states with the most financial stress due to the coronavirus pandemic, according to a study from WalletHub.
Between hospital bills, sky-high unemployment, and the uncertainty of when things will ever go back to normal, the COVID-19 pandemic has put millions of Americans in financial distress.
The pandemic has been one of the biggest public health crises that the U.S. has ever faced, and, it has been almost as devastating to Americans’ finances as it has to their health.
Indiana ranked third overall in this study while Kentucky was No. 14.
Indiana ranked fifth worst in the credit score category. The state was also seventh in bankruptcy filings.
Kentucky ranked third worst in credit score and eighth in "debt" search.
Ohio was No. 29 overall in the study. The state only ranked in the top 10 in one category: "states where people most need a loan."
WalletHub compared all 50 states and the District of Columbia to determine in which people are in the most financial distress during COVID-19, using nine key metrics in six overall categories:
- Credit Score
- People with Accounts in Distress
- Average Number of Accounts in Distress
- Change in Number of Bankruptcy Filings - July vs. January
- “Debt” Search Interest Index
- WalletHub “States Where People Need Loans the Most Due to Coronavirus” Score.
WalletHub defines an account in distress as one which either is in forbearance or has its payments deferred.
Along with being a public health crisis, the study finds that the pandemic has been significantly detrimental to Americans’ finances.
Louisiana was first on the list, followed by Nevada. Oklahoma and Florida were also in the top five.
WalletHub says that the financial distress can be partially attributed to hospital bills and unemployment.
The inability of Congress to agree on a bipartisan relief bill has created further uncertainty.
