Texas ranks among the ten most debt-burdened states in the country, with a debt-to-income ratio of 144.2 percent and a credit card delinquency rate of 14.2 percent — the third-highest in the nation — according to a ConsumerAffairs analysis published in May 2026.
What Happened
ConsumerAffairs ranked all 50 states by debt burden using two primary metrics: debt-to-income ratios and delinquency rates, defined as debt more than 90 days past due. Texas landed at No. 10.
The 144.2 percent debt-to-income ratio means the average Texas resident owes roughly $1.44 for every dollar of annual income earned. The 14.2 percent credit card delinquency rate means more than 1 in 7 Texans with credit card balances is significantly behind on payments.
Separately, 13 Texas cities appeared among the most delinquent municipalities in the country, according to a KXAN analysis of Q4 2025 data. Laredo ranked No. 8 nationally with 18.31 percent of residents loan-balance delinquent.
"Debt shapes your life in a very serious way. You need to know what you owe, what your interest rates are, and how much of your income is going towards that debt each month." — Dayna Edens, ConsumerAffairs spokesperson
| Texas Debt Metric | 2026 |
|---|---|
| National debt-burden ranking | #10 |
| Debt-to-income ratio | 144.2% |
| Credit card delinquency rate | 14.2% (3rd highest nationally) |
| Texas cities in top national delinquency list | 13 |
| Laredo delinquency rate (worst in TX) | 18.31% |
Why It Matters
Debt delinquency and mortgage default are directly linked. A homeowner already 90+ days past due on credit cards — managing a 144 percent debt-to-income ratio — has limited ability to absorb additional financial shocks: a job disruption, a medical event, a property tax increase, or a spike in homeowners insurance.
Texas property taxes run 2.0–2.5 percent annually. For a $300,000 home, that's $6,000–$7,500 per year regardless of income. When credit card delinquency is already at 14.2 percent statewide, the margin for managing carrying costs narrows significantly.
The financial strain documented in the ConsumerAffairs ranking reflects the same pressure that pushed Texas to the top of national foreclosure start rankings — 3,590 starts in May 2026 alone, more than any other state.
What This Means for DFW Homeowners
For Dallas-Fort Worth homeowners already stretched on debt, options narrow quickly when a single payment disruption occurs. Missing one mortgage payment at 90+ days delinquent on credit cards is very different from missing a payment with clean credit and cash reserves.
The carrying cost of waiting — property taxes, insurance, utilities, mortgage arrears accrual — compounds monthly. A cash sale that closes in 10–14 business days stops that compounding immediately.
Related: DFW Foreclosure Calls Have Tripled → · Behind on Mortgage: What Happens Next → · Selling During Financial Hardship →
Sources: ConsumerAffairs via Spectrum News · KXAN Austin