Editor’s note: Data in this article is based on analysis from WalletHub.
Most people don’t suddenly fall behind on bills. It usually starts out small. You carry a balance a little longer than usual, put off making a payment, and lean on credit just to get through the month.
That’s why this new data from WalletHub is worth paying attention to. It highlights where those early warning signs are becoming more common. As costs stay elevated in key areas, more households are feeling squeezed. Knowing where this is happening (and why) can help you prepare yourself financially before those pressures hit closer to home.
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How the study measures financial distress
That study by WalletHub doesn’t just rely on one number. It looks at a handful of signals that tend to show up when money is getting tight. Things like how many accounts are in distress, how many people are behind on payments, and credit score all factor into rankings…