Study: San Antonio in Top 10 cities with most financial distress
February 23, 2024 11:00AM CST
Overlooking downtown San Antonio at night.
SAN ANTONIO (KTSA News) — Some in the mainstream media will tout a U.S. economy that is either strong or rebounding, but that may overlook periods of high unemployment and high inflation over the last few years.
A new study from WalletHub ranks the amount of financial distress happening across 100 cities in the nation, and San Antonio ranks No. 7.
Let that sink in.
“Getting out of the downward spiral of financial distress is no easy feat. You may get temporary relief from your lenders by not having to make payments, but all the while interest will keep building up, making the debt even harder to pay off. People who find themselves in financial distress should budget carefully, cut non-essential expenses, and pursue strategies like debt consolidation or debt management to get their situation under control.” – Cassandra Happe, WalletHub analyst.
If it is any consolation, two other Texas cities finished even higher on the list, those being Dallas at No. 5 and Houston at No. 2.
Other cities finishing in the top 20 include Austin at No. 13, and Forth Worth at No.15.
WalletHub did another study ranking states with the most financial distress, and Texas finished at No.3
Tips for Getting Out of Financial Distress
- Consider Hardship Programs: If your financial difficulties are temporary, you can ask your creditors about their “hardship programs.” These programs allow you to temporarily defer or reduce your monthly payments until you get back on your feet.
- Try Debt Management: Debt management involves negotiating permanently better terms with your credit card issuer, such as lower monthly payments or a lower interest rate. Creditors want to get paid on time, so if you show a willingness to pay what you owe but express that you need a bit of relief to do so, you may be successful. You should avoid paying a debt management company, though, as you can set up a plan directly with your lender.
- Avoid Easy Ways Out: You might be getting offers for various types of debt solutions, and it can be difficult to determine what’s legitimate and what’s not. A good rule of thumb is that if it seems too good to be true, it probably is. For example, debt settlement companies may promise to get you off the hook for pennies on the dollar, but they’ll also require you to default first and hurt your credit score further. They tend to charge expensive fees, too. You could propose a debt settlement offer to your lender directly, but most people in financial distress don’t have the money saved for a lump-sum payment.
- Consolidate Your Debt: A debt consolidation loan can put all your debts in one place with a lower interest rate. Another similar option is a balance transfer credit card. In both cases, though, you’ll typically need good or excellent credit to qualify for any decent options. You can qualify for a debt consolidation loan with lower credit scores – even bad credit, in some cases – but you won’t necessarily get an interest rate lower than the ones on your existing debts.
- Avoid Predatory Lenders: It may be tempting to get quick, almost-guaranteed cash from a payday lender or auto title lender. But if you do, you’ll be slapped with exorbitant interest rates and fees that will make paying back the money a nightmare.
- Budget Carefully: One way to have more money to pay your debts each month is to be stricter about your spending. Cut out any luxury purchases that you can, try to find better deals on your essential purchases, and put as much extra as you can toward paying your debts. In most cases, anything extra that you pay will help pay down the principal balance, rather than just interest, which helps you get out of debt more quickly.
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