Austin among U.S. cities under most financial stress during COVID-19

During the recession caused by the pandemic, many Texans, including the Austinites, are burdened with financial troubles.

A study published this week by WalletHub’s personal finance website found Austin ranked eighth in the US due to financial hardship during the pandemic.

To examine where Americans are struggling the most financially, WalletHub compared the 100 largest cities using nine key metrics that were divided into six categories. Factors considered include average creditworthiness, the number of bankruptcy filings between June 2019 and June 2020, and how to find debt and credit online.

Austin counts among the categories:

  • No. 1 for people with accounts in need, taking into account the proportion of people with accounts in need in September and the change in this number from January to September.

  • Number 9 for the average number of accounts in distress, considering the average number of accounts in distress in September and the change from January to September.

  • No. 10 for bankruptcy filings is increasing.

WalletHub defines a troubled account as one for which payments have been reduced, skipped, or delayed.

Among the Texan cities, Austin has a ton of businesses in WalletHub’s top 10. Houston comes in at number 3, closely followed by San Antonio at number 4, Dallas at number 5 and Fort Worth at number 10.

In September, the national unemployment rate was 8.3 percent and the national unemployment rate was 7.7 percent. Last month, the unemployment rate in the Houston area was 9.6 percent, compared to 8.1 percent in the previous month – the highest of the major metropolitan areas in the state. The September unemployment rate was 6.4 percent in Austin, 7.4 percent in Dallas, 7.6 percent in Fort Worth, and 7.8 percent in San Antonio.

According to the study, Houston, Dallas and San Antonio rank first among the 100 largest US cities in the country when it comes to searching for loans online. Houston is also the first place to search for debt online.

A total of 13 cities in Texas are included in the ranking. According to WalletHub, Irving has the greatest financial stability of the 13 cities with a financial stress ranking at 72nd place.

The biggest financial hardship is in Las Vegas, WalletHub says, followed by Chicago.

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A version of this story originally appeared on our sister site InnovationMap.com.

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