The No. 1 Cause of Financial Stress in Every State

If you’re worried about money issues, you’re not alone. More than half of American workers are stressed about their finances, according to a recent survey by consulting company PwC. 

To pinpoint what’s causing financial stress among Americans, GOBankingRates surveyed more than 7,000 people in all 50 states and the District of Columbia. GOBankingRates conducted a similar survey in 2016. This year, the question was the same, but the answer choices were slightly different.

We asked, “Of the following, what is your No. 1 cause of financial stress?” Respondents could choose one of the following answers:

• Education (ex. college costs)
• Family (ex. child care costs, divorce)
• Housing
• Healthcare
• Taxes
• Everyday costs (ex. groceries, utilities)
• Debt

Still, the most common cause of financial stress in America is the same in both the 2016 and 2017 surveys: debt. Click through to see the most common money worries in your state. 

Alabama: Everyday Costs

Everyday costs are the top source of financial stress in Alabama, with about 27 percent of respondents choosing this answer.

Paying off debt, which was the No.1 cause of money stress in this state last year, is the second-most common response this year. Alabama residents might be struggling to pay everyday costs because the state’s median household income of $43,623 is about $10,000 below the national median household income.

Alaska: Healthcare

The No. 1 source of money stress in Alaska is healthcare. This makes sense given that Alaska has the highest average single and family premiums for employer-based health insurance of any state, according to the Kaiser Family Foundation. And, a separate GOBankingRates study found Alaska is one of the worst states for health insurance costs.

Arkansas: Debt and Healthcare

An equal percentage of Arkansas residents are worried about debt and healthcare. A separate GOBankingRates’ survey found that medical debt is the biggest source of debt in Arkansas, which might explain why both debt and healthcare are the top sources of money stress in the state.

Arizona: Debt

The per capita debt balance in Arizona is higher than the national per capita debt load, according to the Federal Reserve Bank of New York. That might explain why debt is the top cause of money stress in the state.

You can get financial stress help for free or for a low cost if you’re struggling with debt by connecting with a National Foundation for Credit Counseling certified counselor through NFCC.org.

California: Debt

Debt still is the top source of financial stress in California, as it was in 2016. The reason for this is likely because the state has the highest debt balance per person of any state, according to the Federal Reserve Bank of New York. Plus, residents may be struggling to pay off what they owe because California is one of the states most likely to live paycheck to paycheck.

Colorado: Debt

Debt stress is common in Colorado. About 27 percent of respondents answered that debt is their top money worry this year. Respondents also chose healthcare and everyday costs as their second and third biggest financial stressors, respectively. 

Connecticut: Taxes

It’s not surprising that taxes are the top source of financial stress in Connecticut, considering its residents have one of the highest tax bills in the U.S.

A separate GOBankingRates study found that the average tax bill in Connecticut is $18,752. After taxes, everyday costs and healthcare tie for the second most common cause of money stress in Connecticut.

District of Columbia: Debt

The nation’s capital has the second-highest cost of living in the U.S., according to the Missouri Economic Research and Information Center. As a result, residents might be relying on debt to help cover costs in the District of Columbia. One-third of respondents say debt is their No. 1 source of financial stress.

From California to New York: The Cost of Living Across America

Delaware: Everyday Costs

Delaware has a higher cost of living than the national average. That might explain why everyday costs are the top money worry among respondents from this state.

One of the best ways of dealing with financial stress stemming from everyday costs is to review your spending, create a budget and pinpoint expenses that can be reduced or eliminated.

Florida: Debt

Florida has a higher credit card debt balance per capita than the national average, according to the Federal Reserve Bank of New York. That might be part of the reason why debt is the No. 1 source of financial stress in the state.

Healthcare is the second most common cause of money stress in Florida. Retirees who are worried about paying for medical costs in the Sunshine State should use these strategies to survive rising healthcare costs.

Georgia: Debt

Georgia’s top money worry is debt, as it was in the 2016 survey. Everyday costs are the second most common source of money stress.

Although the cost of living here is among the lowest in the nation, the median household income of $49,620 also is low. So, some residents might be struggling to cover everyday costs.

Hawaii: Education

As in 2016, the top source of financial stress in Hawaii is education. The cost of in-state tuition at a four-year public institution has risen significantly from $3,386 in 2004 to $10,671 in 2016, according to the College Board.

College costs in Hawaii are so high that a family would need to earn near six figures to put their kid through school, found a recent GOBankingRates study.

See the Full Results: Do You Make Enough to Put Your Kid Through College in Your State?

Iowa: Healthcare

Healthcare ranks as the top source of financial stress in Iowa. However, the average single and family premiums for employer-based health coverage in Iowa are lower than in most states. But, premiums on the individual market are slightly higher than the national average, according to the Kaiser Family Foundation.

Idaho: Everyday Costs

Idaho’s low median household income of $47,583 might make it hard to cover everyday costs. Paying off debt might also be difficult in a state where paychecks are smaller — which might explain why debt is the second most common money worry in Idaho. In 2016, paying for education was the top source of financial stress here.

Illinois: Debt

Debt continues to be the No. 1 cause of financial stress in Illinois — just as it was in 2016. Mortgage debt is the biggest source of debt in Illinois, found GOBankingRates. And, 66 percent of the state’s recent college graduates have student loan debt, another GOBankingRates’ study found.

Indiana: Everyday Costs

Even though the cost of living is low in Indiana, paying for everyday costs might cause financial problems and stress for some because the median household income here is low. Healthcare is the No. 2 biggest financial stress in Indiana, followed by debt. 

Kansas: Debt

About 24 percent of respondents in Kansas named debt as their top source of financial stress. After debt, healthcare is the No. 2 financial worry.

If you’re dealing with financial stress, focus and take action on what you can control — and stop worrying about the things you can’t control.

Kentucky: Debt

Debt is the top source of financial stress in Kentucky. It might have something to do with the state’s low median household income of $43,740. As a result, residents might find it hard to stretch small paychecks to cover debt payments on top of everyday expenses — the No. 2 source of money stress among Kentucky respondents.

Louisiana: Debt

Louisiana’s low median household income and high unemployment might make it hard for residents to pay off debt. The median household income of $45,047 is more than $8,000 below the national median. And, the state’s unemployment rate of 5.3 percent is above the national rate of 4.3 percent, according to July 2017 figures from the Bureau of Labor Statistics.

Considering this, it’s not surprising that everyday costs are the No. 2 source of financial stress in Louisiana.

Maine: Debt and Healthcare

Once again, Maine residents say debt is their top source of financial stress. In the 2016 survey, paying off debt and never being able to retire were both the No. 1 cause of money stress in the state. This year, healthcare is the most common response along with debt.

Don’t Go Into Debt: 10 Ways to Survive Rising Healthcare Costs

Maryland: Debt

Debt is the top cause of money stress in Maryland, as it was in 2016. And, everyday costs are the second most common money worry among respondents.

The median household income in Maryland is $74,551 — but the state also has one of the highest costs of living in the country. So, residents might be having a hard time making debt payments. 

Massachusetts: Debt

Massachusetts has the sixth-highest cost of living in the nation, according to the Missouri Economic Research and Information Center. With high living expenses, residents might be having a hard time juggling debt payments and everyday costs — the latter of which are the second biggest money worry in the state.

Michigan: Debt

The most common money worry in Michigan is debt. And, most likely, it’s student loan debt.

A separate GOBankingRates’ survey found that student loans were the biggest source of debt in Michigan. More than 60 percent of the state’s recent college graduates have student loan debt, and the average amount owed is $30,045.

Read: How a Single Mom in Detroit Overcame Her Debt Stress

Minnesota: Debt

In Minnesota, 25 percent of respondents named debt as their top cause of financial stress. However, about 24 percent said healthcare is their No. 1 money worry.

However, the average single and family premiums for employer-based health coverage in Minnesota are lower than the average premiums nationwide, according to the Kaiser Family Foundation.

Mississippi: Debt

Although debt is the No. 1 source of financial stress in Mississippi, everyday costs are a close second. The state’s median household income of $39,665 likely contributes to both of these sources of money stress.

Ease your financial stress symptoms by taking advantage of free ways to relax and get rid of tension.

Missouri: Healthcare

About one-fourth of the respondents in Missouri named healthcare as their top source of money stress. In a state where the median household income of $48,173 is below the national median, paying for healthcare might be a struggle for some.

Montana: Debt and Taxes

It’s ironic that in one of the states with no sales tax, taxes are the biggest source of financial stress. In fact, Montana also has the lowest average tax bill in the U.S. Still, an equal percentage of respondents — 20 percent — said debt is also their No. 1 money worry.

Nebraska: Debt

Nebraska respondents named debt as their No. 1 source of financial stress this year and in 2016. 

Taxes are the second most common cause of money stress in the state. A separate GOBankingRates’ study found that the tax bill in Nebraska is higher than the U.S. average. 

New Hampshire: Debt

One-fourth of respondents in New Hampshire named debt as their No. 1 source of financial stress. Student loan debt, in particular, might be the source of this stress.

The average student loan debt in New Hampshire is higher than in any other state. Seventy-six percent of college graduates in the state have student loan debt and owe an average of $36,101.

New Jersey: Everyday Costs

It’s not surprising that everyday costs are the top source of financial stress in a state where the cost of living is higher than the national average.

To free up more room in their budget and ease their stress, New Jersey residents should look for ways to cut monthly bills — such as re-shopping their auto insurance or ditching their pricey cable TV plan.

New Mexico: Debt

There might be various factors that make debt the top source of stress in this state. New Mexico’s median household income of $44,963 is lower than the national median. And, its unemployment rate is 6.3 percent, according to the BLS. Residents with low wages or without a steady income might be relying more on debt to cover costs.

New York: Debt

New York is one of the worst states for families to live a richer life, mostly thanks to high home prices, child care costs and healthcare. So, it’s not too surprising that debt is the No. 1 cause of financial stress here, followed by everyday costs.

Nevada: Debt

Nearly 30 percent of respondents in Nevada named debt as their top cause of money stress. Paying off debt was also the top money worry in the state in 2016.

Nevada residents actually have a slightly heavier debt load per person than the nation as a whole — $47,360 versus $46,590, according to the Federal Reserve Bank of New York.

North Carolina: Debt

North Carolina’s median household income of $46,868 is about $7,000 below the national median income. Low wages in the state might make it tough for some to cover debt payments along with everyday costs, which are the third most common source of financial stress in North Carolina. Healthcare is the No. 2 money worry.

North Dakota: Taxes

Taxes are the No. 1 cause of money stress in North Dakota. However, it’s one of the cheapest states to file taxes because of its low income tax rate, a separate GOBankingRates study found. 

Ohio: Everyday Costs

The cost of living is low in Ohio — but so is the median household income of $49,429. That might explain why everyday costs are the top source of financial stress in the state. The No. 2 money worry is debt, which was the top source of financial stress in Ohio in 2016.

Oklahoma: Debt

The state’s low median household income of $46,879 might contribute to the debt stress in this state. But even on a small income, it’s possible to get out of debt — if you take the appropriate steps.

Oregon: Healthcare

Healthcare is the most common cause of financial stress in Oregon — even though health insurance costs aren’t high here. The average monthly premium on the individual market in Oregon is lower than the national average, according to the Kaiser Family Foundation. Premiums for employer-based health insurance also are lower in Oregon than the national average.

Pennsylvania: Debt

Debt is the top source of financial stress in Pennsylvania, followed closely by everyday costs. Student loans might be playing a big role in this debt stress.

Seventy-one percent of recent college graduates in Pennsylvania have student loan debt and owe an average of $34,798 — the second-highest average student loan debt in the nation.

Rhode Island: Taxes

The average tax bill in Rhode Island is higher than in most states. That likely explains why taxes are the top money worry in the state. You can ease the financial stress — and cost of taxes — by making sure you claim all of the deductions you deserve.

South Carolina: Debt

A heavy student loan debt burden in South Carolina might be the reason respondents in this state said that debt is their No. 1 source of financial stress. Sixty percent of recent college graduates in South Carolina have student loan debt and owe an average of $30,564 — the ninth-highest amount in the U.S.

South Dakota: Debt

South Dakota also has a heavy student loan debt burden. In fact, it has the second-highest percentage of recent college graduates with student loans – 73 percent. That could explain why debt is the biggest source of financial stress. And interestingly, none of the survey respondents from South Dakota said housing is their biggest money stress.

Tennessee: Debt

Debt remains the biggest source of financial stress in Tennessee, as it was in 2016. The No. 2 most common money worry is healthcare, followed by everyday costs.

Texas: Debt

Both this year and in 2016, respondents in Texas named debt as their No. 1 cause of financial stress. This year, the second most common money worry is healthcare. And thanks to high health insurance premiums, home prices and other factors, Texas is also one of the worst states to live a richer life.

Utah: Debt

Residents in Utah have to work more than 50 hours in order to afford the monthly mortgage payment, found GOBankingRates. That could explain why debt is the top source of money stress in this state. If you’re struggling to make mortgage payments, you might be able to negotiate a lower modified mortgage loan.

Virginia: Debt

It’s no wonder debt is the top source of money stress in Virginia. The median mortgage payment here is among the highest in the nation, GOBankingRates found. Plus, the cost of living is higher than the U.S. average.

Vermont: Healthcare

The average monthly health insurance premium of $400 on the individual market in Vermont is among the highest in the U.S., according to the Kaiser Family Foundation. And GOBankingRates’ 2016 Household Debt survey found that medical debt is the biggest source of debt in Vermont. So, it’s no wonder healthcare is the No. 1 money worry in this state.

Washington: Debt

Like residents in most states, Washingtonians are more likely to attribute financial stress to debt than any other source. It was also the biggest source of money stress in 2016. The No. 2 and No. 3 biggest causes of financial stress in Washington this year are everyday costs and healthcare, respectively. 

Wisconsin: Healthcare

One-fourth of Wisconsin respondents named healthcare as their top source of financial stress. This might be especially true for retirees and seniors. Wisconsin is one of the states with the highest senior care costs, found GOBankingRates.

West Virginia: Debt

Debt is the biggest cause of money stress in West Virginia. Although the cost of living in Virginia is lower the U.S. average, the median household income is only $41,751 — which could make it hard for some residents to get out of debt.

Wyoming: Debt

As in most states, debt is the No. 1 source of financial stress in Wyoming. And in GOBankingRates’ debt survey, credit card debt ranked as the biggest source of debt in Wyoming. In fact, Wyoming is one of only two states where credit cards are the biggest source of debt.

Financial Stress Across America

In GOBankingRates’ 2017 survey, roughly 23 percent of respondents nationwide said debt is their top source of financial stress, followed by everyday costs (19 percent) and healthcare (18 percent).

Nearly 13 percent of respondents said taxes are the biggest cause of financial stress; 11 percent chose housing; 9 percent said education; and 6 percent named family.

Up Next: Survey Reveals Americans’ Biggest Money Fears in 2017

Methodology: This GOBankingRates survey posed the question, “Of the following, what is your No. 1 cause of financial stress?” to 7,087 people among all 50 states and Washington, DC. Respondents could select one of the following answer options: 1) Education (ex: your college costs or kids’) 2) Family (ex: child care costs, divorce) 3) Housing 4) Healthcare 5) Taxes 6) Everyday costs (ex: groceries, utilities) or 7) Debt. Responses were collected through a Google Consumer Survey conducted from Aug. 14 to Aug. 16, 2017, and responses are representative of the U.S. online population.