A review of the impact of the current financial woes and economic instability across the U.S. has revealed Montana to be the most financially challenged state. This area ranks high for multiple indicators, including household debt-to-income ratio.
The review comes from the financial firm Uplift Legal Funding, based on analysis of six factors, each relating to the personal finances of people living in each state. These factors were scored out of 10 to create an index score for all 50 states.
The factors analysed within the index included: consumption of annual income as a percentage alongside the percentage of income saved; household debt-to-income ratios; annual personal bankruptcy rates, and the number of saving and debt-related Google searches per state.
Data was obtained from the U.S Bureau of Economic Analysis (BEA); The Federal Reserve System and Google Keyword Planner were used to create a Money Management Index Score for all 50 states. The Index comprises of six factors that demonstrate the ways in which residents of each state manage their money.
The outcome produces a list of the top 10 most financially challenged U.S. states
| Rank | State | Consumption as a % of Income | % of Income Saved | Household Debt-to-Income Ratio | Personal Bankruptcy Rate | Savings Searches per 100k | Debt Searches per 100k | Index Score |
| 1. | Montana | 94.9% | 5.1% | 1.72 | 59.2 | 301.8 | 548.6 | 25.6 |
| 2. | Maine | 96.6% | 3.4% | 1.60 | 47.7 | 321.9 | 521.2 | 27 |
| 3. | Missouri | 91.2% | 8.8% | 1.24 | 251.1 | 269 | 460.2 | 28.8 |
| 4. | Delaware | 97.4% | 2.6% | 1.50 | 166.1 | 372.2 | 340.7 | 31.6 |
| 5. | Alabama | 87.9% | 12.1% | 1.32 | 296.4 | 226.8 | 417.2 | 32 |
| 6. | Oregon | 89.2% | 10.8% | 1.72 | 112.4 | 290.6 | 497.6 | 34 |
| 7. | Utah | 86.9% | 13.1% | 1.72 | 167.1 | 304.4 | 494.9 | 34.7 |
| 8. | Florida | 92% | 8% | 1.60 | 144.8 | 241.6 | 361 | 35.9 |
| 9. | Arizona | 90.6% | 9.4% | 1.72 | 135.8 | 249.3 | 361.5 | 37.8 |
| 10. | South Carolina | 92.2% | 7.8% | 1.72 | 65 | 213.5 | 375.4 | 38 |
Montana was named the U.S. state most in need of financial assistance, with a score of 25.6 out of 100. At 94.9 percent, Montana ranked third highest for annual average consumption of income, meaning that residents have less disposable income to save after financing essential living expenses.
At 1.72, Montana also ranked joint third (alongside eight other states) for the highest for household debt-to-income ratio, meaning that residents’ debt is significantly higher than their annual earnings. This is reflected in the high number of debt-related searches on Google. At 548.6 searches per 100,000 residents, Montana ranked second highest for Google searches relating to debt.
The second state in need of financial assistance was Maine, with a score of 27 out of 100. At 96.6 percent, Maine ranked second highest for annual average consumption of income, leaving residents with only 3.4 percent of disposable income to save. Residents living in Maine were also more inclined to search for ways to save money (321.9 searches per 100,000 residents). Maine also ranked third highest for debt-related Google searches, at 521.2 searches per 100,000 residents. Interestingly, however, Maine had the third lowest personal bankruptcy rate of 47.7 per 100,000 residents.
Missouri came in third, with a score of 28.8 out of 100. Despite having a household debt-to-income ratio of 1.24, which was lower than most other states, it had the second highest personal bankruptcy rate of 251.1 per 100,000 residents. Apart from Alabama, which ranked first, residents in Missouri filed for bankruptcy more than any other state. At 91.2 percent, Missouri ranked ninth for annual average consumption of income, leaving residents with an average of 8.8 percent of income to save.
The states with the highest debt-to-income ratios were Hawaii and Idaho at 2.06, followed by Maryland at 1.84. North Dakota was the state with the most Google searches for both saving-related terms, at 545 searches per 100,000 residents, and debt-related terms, at 550.5 searches per 100,000 residents.
