New Jersey, Connecticut, Illinois, Massachusetts, and California are ranked as the top "sinkhole states" that lack sufficient funds to cover their long-term debts and financial obligations. These states face significant challenges, often driven by high unfunded pension obligations. Roughly half of all U.S. states do not have enough money to pay all their bills.
Truth in Accounting sorts states based on their ability to cover their debts. The top “sinkhole states” — states lacking the funds to cover their costs — were New Jersey, Connecticut, Illinois, Massachusetts, and California. Conversely, 25 states touted a surplus of funds relative to their total costs and debts.
The state governments with the lowest per capita debt at the end of 2023 were Tennessee, Utah, Nebraska, Idaho, South Dakota, Oklahoma, and Indiana, each with less than $3,000 in debt per resident.
Women: 30% of women say they cannot pay some of their monthly bills. This compares with 21% of men. Black and Hispanic adults: 43% of Black adults and 37% of Hispanic adults say they can't pay some bills, while 23% of Asian adults and 19% of White adults say this.
Delaware, Louisiana, Vermont, Kentucky, Maryland, Pennsylvania, Hawaii, Mississippi, Rhode Island, New York, South Carolina, Alabama, New Mexico, Michigan, Washington, Nevada, Kansas, Ohio, Texas and New Hampshire make up the remaining 25 Sinkhole States.
The 3-6-9 rule in finance is a guideline for building an emergency fund, suggesting you save 3 months of essential expenses for stable jobs, 6 months for most people (especially those with families/mortgages), and 9 months for those with irregular income (freelancers, sole earners) or high financial risk. It's a flexible strategy to provide financial security, helping you avoid debt or panic withdrawals during unexpected job loss or emergencies, with the exact target depending on your income stability and dependents.
Federal Reserve data shows that about 23% of Americans have no debt.
If you miss a payment, you will receive a letter reminding you that you missed a payment and asking you to pay promptly. After that, you may receive a more direct letter or get a phone call demanding payment. Bills will probably be turned over to an independent collection agency.
Based on recent studies (2024-2025), Texas, Florida, Louisiana, Nevada, and South Carolina are frequently cited as the most financially distressed U.S. states, showing high rates of debt searches, credit issues, and accounts in forbearance/distress, while Hawaii, Vermont, and Alaska often rank as the least distressed. These rankings rely on metrics like credit scores, bankruptcy filings, and consumer financial health indicators.
States' long-term ledgers
No, a hospital cannot turn you away from the emergency room for owing money due to federal law (EMTALA), requiring stabilization for emergencies regardless of ability to pay; however, for non-emergency care, hospitals can refuse treatment, require deposits, or stop services for unpaid bills, especially for private hospitals, though nonprofit hospitals must follow specific financial assistance policies before extreme collections, notes Massachusetts Legal Help and NCLC Digital Library.
An 800 credit score is considered "exceptional" and, while not extremely common, it's achieved by a significant minority: roughly 23-24% of U.S. consumers have scores of 800 or higher, meaning nearly one in four people falls into this top tier, though far fewer (around 1.5-2%) hit a perfect 850. This level of credit is excellent for securing the best loan rates, requiring consistent on-time payments, very low credit utilization, and a long credit history.
Your $500,000 can give you about $20,000 each year using the 4% rule, and it could last over 30 years. The Bureau of Labor Statistics shows retirees spend around $54,000 yearly. Smart investments can make your savings last longer.
The Rule of 69 is a simple calculation to estimate the time needed for an investment to double if you know the interest rate and if the interest is compounded. For example, if a real estate investor earns twenty percent on an investment, they divide 69 by the 20 percent return and add 0.35 to the result.
According to this rule, you need to have approximately $240,000 to $300,000 saved for every $1,000 of monthly income you want in retirement, assuming you have a balanced mix of investments and safe withdrawal strategies.
Texas is the most financially distressed state in the country, followed by Florida, Louisiana, Nevada and South Carolina. The states that are best off? That honor goes to Hawaii, followed by Vermont, Alaska, Oregon and New Mexico.
The largest holder of U.S. debt is the U.S. government itself, primarily through the Federal Reserve and intragovernmental holdings (like Social Security trust funds), followed by domestic investors (mutual funds, banks, individuals) and then foreign investors, with Japan often leading as the largest foreign holder, though China's holdings have decreased.
On one end, Idaho, Utah, Montana, and Wyoming consistently rank near the bottom of debt burden rankings. Idaho ranks last among U.S. states in per capita long-term debt, at $3,900—making it the state with the least per capita debt in the country.