US city with the most people in financial distress revealed. Find out if it's yours — and how you can dig out of debt

Core Insights - Chicago has been identified as the most financially distressed major city in the U.S., highlighting the impact of debt, inflation, and economic uncertainty on household finances [1][2] Financial Distress Index - A study by WalletHub revealed that Chicago scored 77.74 out of 100 on the financial distress index, with a nearly 30% year-over-year increase in residents with distressed credit accounts and a 127% surge in the average number of distressed accounts per person [2][6] National Context - The financial distress in Chicago reflects a broader national trend, with Americans holding $1.28 trillion in credit card balances as of late 2025, indicating widespread financial strain across the country [3] Contributing Factors - Key factors contributing to financial distress include persistent inflation, uneven wage growth, high housing costs, and uncertainty in the labor market, which have led to a decline in consumer confidence [8] Other Distressed Cities - Besides Chicago, WalletHub identified Houston, Las Vegas, Dallas, and Los Angeles as the next most financially distressed major cities, indicating a pattern of financial strain in urban areas [5][6]