These Are The Most Financially Stable States In America

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  • New York named the most financially stable state in America after ranking low for multiple factors, including household debt-to-income ratio.
  • Wyoming is the most likely state to save money, with residents saving an average of 23.2% of their overall income.
  • Alaska scored the lowest for personal bankruptcy rate, at 29.8 per 100,000 residents.

New York has been named the most financially stable state in America, new research has revealed, after examining multiple factors relating to the personal finances of residents living in each state.

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Financial experts at Uplift Legal Funding analyzed six factors relating to the personal finances of residents in each state and scored each one out of 10 to create an Index score for all 50 states.

The factors analyzed 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.

Top 10 Most Financially Stable States In America

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.

New York

82.8%

17.2%

0.40

74.3

270.7

324.9

69.7

2.

Connecticut

79.7%

20.3%

1.32

83.7

278.5

339.7

64.1

3.

Massachusetts

83.1%

16.9%

1.24

50

290.7

314.2

63.6

4.

Wyoming

76.8%

23.3%

1.50

96.9

469.6

485.1

61.7

5.

South Dakota

80.3%

19.7%

1.24

66.9

377

447.3

60.8

6.

Rhode Island

82.5%

17.5%

1.60

90.5

434.3

333.7

60.6

7.

Washington

79.4%

20.6%

1.60

77.6

312.5

395.3

59.6

8.

New Jersey

82.3%

17.7%

1.50

112.7

257.4

279.3

59.6

9.

Oklahoma

78.6%

21.4%

1.24

148.8

343.8

445.5

57.6

10.

California

82.4%

17.6%

1.60

104.4

241

298.3

57.4

1. New York

New York was named the most financially stable state in America, with a score of 69.7 out of 100. With a household debt-to-income ratio of 0.40, New York was the only state where residents’ debt was significantly lower than their annual earnings. This likely explains why it also ranked as the sixth least likely state to make debt-related Google searches, at 324.9 searches per 100,000 residents.  

2. Connecticut

The second most financially stable state was Connecticut, with a score of 64.1 out of 100. At 79.7%, Connecticut had the sixth lowest annual average consumption of income, meaning that residents save an average of 20.3%. It was the tenth least likely state to make debt-related Google searches at 339.7 per 100,000 residents. 

3. Massachusetts

Massachusetts came in third, with a score of 63.6 out of 100. It had the fourth lowest personal bankruptcy rate, at 50 per 100,000 residents, and the third lowest household debt-to-income ratio of 1.24. Massachusetts was also the fifth least likely state to make debt-related Google searches, at 312.2 searches per 100,000 residents.

4. Wyoming

With a score of 61.7 out of 100, Wyoming ranked fourth among the most financially stable states in America. At 76.8%, it had the lowest annual average consumption of income overall, meaning that residents in Wyoming were saving more than any other state. As residents have money to save, it explains why Wyoming was also the second most likely state to make saving-related Google searches, at 469.6 searches per 100,000 residents.  

5. South Dakota

South Dakota is the fifth most financially stable state, with a score of 60.8 out of 100. At 80.3%, it had the fifth lowest annual average consumption of income, and correspondingly, the fifth highest amount of disposable income to save. South Dakota also had the third lowest household debt-to-income ratio of 1.24 and ninth lowest personal bankruptcy rate of 66.9 per 100,000 residents.

6. Rhode Island

Ranking sixth among the most financially stable states in America was Rhode Island, with a score of 60.6 out of 100. It was the fourth most likely state to make savings-related Google searches, which is supported by the fact that residents in Rhode Island have an average of 17.5% disposable income to save.

7. Washington

In seventh place was Washington, with a score of 59.6 out of 100. Despite having the fourth highest household debt-to-income ratio, Washington ranked as the third lowest state in terms of annual average consumption of income. Residents in Washington were spending an average of 79.4% of their total annual income, leaving 20.6% to save.

8. New Jersey

New Jersey ranked the eighth most financially stable state in America, with a score of 59.6 out of 100. With an average annual consumption of income of 82.3%, New Jersey ranked as the tenth lowest for this factor. Despite having the fifth highest household debt-to-income ratio of 1.50, it was the least likely state to make debt-related Google searches, at 279.3 searches per 100,000 residents.

9. Oklahoma

Oklahoma came in ninth, with a score of 57.6 out of 100. At 78.6%, Oklahoma had the second lowest annual average consumption of income, leaving residents with 21.4% to save. It also had the third lowest household debt-to-income ratio at 1.24.

10. California

In tenth place came California, with a score of 57.4 out of 100. At 82.4%, it had the eleventh lowest annual average consumption of income, leaving residents with 17.6% of disposable income to save. Despite having the fourth highest household debt-to-income ratio of 1.60, it was the second least likely state to make Google searches relating to debt, at 298.3 searches per 100,000 residents.

11. Alaska

Alaska had the lowest personal bankruptcy rate of 29.8 per 100,000 residents. 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.

Increase In Consumer Debt Levels

A spokesperson for Uplift Legal Funding said: “Consumer debt levels saw an annual increase of 7% last year, according to Experian. The largest percentage increases were for personal loans, where total balances increased by 18.3%, and credit card balances, which increased by 16%.”

“In the current economic climate, it is to be expected that US citizens are turning to search engines like Google to better discover ways to alleviate debt and save money faster. With consumer debt levels rising in line with the cost-of-living and inflation, the research aims to highlight the importance of living within means and creating personal finance plans.”

“Debt can be overwhelming, but there are various steps individuals can take towards alleviating it including negotiating lower interest rates and applying for 0% balance transfer credit cards. It is important not to ignore it.”