Nearly a century ago, America emerged from the 1918 pandemic, only to suffer through the depression of 1920-21. Flash forward 100 years later, and the story sounds all too familiar to those now living through the Covid-19 recession of 2020. Now as then, people need a helping hand to pay their bills, according to WalletHub.
From home equity loans to payday loans, Americans having trouble with their finances during the Covid-19 pandemic are reviewing their options to relieve the pressure, but the level of their interest varies from state to state. Greater interest in getting a loan indicates that more people in the state are struggling to make ends meet. It also suggests there may be more strain on the state’s public assistance programs in the near future, resulting in a deeper recession than in other states, WalletHub says.
In order to determine the states where people are searching for loans the most during the pandemic, WalletHub revisited its study, published at the beginning of the year, by comparing July 2020 with January 2020, and assigning search interest values from 0 to 100 for the 50 states and the District of Columbia.
WalletHub examined the comparative changes across four key metrics: Change in Average Inquiry Count by comparing July 28, 2020 with January 1, 2020 (25 points); Loan Search Interest Index (25 points); Payday Loans Search Interest Index (25 points); and Home Equity Loan Search Interest Index (25 points).
Here, in ascending order, are WalletHub’s top 10 states where people need Covid-19 loans the most.
10. Ohio
Right about now, residents of the Buckeye State are feeling the pinch. Ohio ranks 27th in Payday Loans Search Interest Index; 10th in Home Equity Loan Search Interest Index; and 3rd in Loan Search Interest Index. From January 2020 to July 2020, Ohio ranks 33rd in Change in Average Inquiry Count.
9. Texas
When it comes to spending, Texans are tightening their belts another notch these days. Texas ranks 24th in Loan Search Interest Index; 19th in Payday Loans Search Interest Index; and 10th in Home Equity Loan Search Interest Index. From January 2020 to July 2020, Texas ranks 12th in Change in Average Inquiry Count.
8. Michigan
These days, citizens of the Wolverine State are struggling to keep the wolf from their doors. Michigan ranks 22nd in Home Equity Loan Search Interest Index; 9th in Payday Loans Search Interest Index; and 8thin Loan Search Interest Index. From January 2020 to July 2020, Michigan ranks 31st in Change in Average Inquiry Count.
7. Minnesota
Residents of the Land of 10,000 Lakes are drowning in red ink. Minnesota ranks 28th in Home Equity Loan Search Interest Index; 17th in Loan Search Interest Index; and 11th in Payday Loans Search Interest Index. From January 2020 to July 2020, Minnesota ranks 8th in Change in Average Inquiry Count.
6. Florida
People living in the Sunshine State are burning through their savings to pay their bills. Florida ranks 30th in Loan Search Interest Index; 21st in Home Equity Loan Search Interest Index; and 4th in Payday Loans Search Interest Index. From January 2020 to July 2020, Florida ranks 15th in Change in Average Inquiry Count.
5. Maryland
Residents of the Old Line State waged a revolutionary war for independence, but now battle just to keep their roof over their head. Maryland ranks 44th in Payday Loans Search Interest Index, and 8thin both Home Equity Loan Search Interest and Loan Search Interest Indices. From January 2020 to July 2020, Maryland ranks 4th in Change in Average Inquiry Count.
4. Missouri
Missourians living in the Show-Me State don’t need to be told when the numbers don’t add up. Missouri ranks 21st in Payday Loans Search Interest Index; 14th in Loan Search Interest Index; and 6th in Home Equity Loan Search Interest Index. From January 2020 to July 2020, Missouri ranks 21st in Change in Average Inquiry Count.
3. Tennessee
When it comes to their finances during the pandemic, residents of the Volunteer State have to face the music. Tennessee ranks 15th in both Payday Loans Search Interest and Home Equity Loan Search Interest Indices, and 8th in Loan Search Interest Index. From January 2020 to July 2020, Tennessee ranks 10th in Change in Average Inquiry Count.
2. Oklahoma
First come, first served in the Sooner State, especially when it comes to bill collectors. Oklahoma ranks 26th in Loan Search Interest Index; 4th in Home Equity Loan Search Interest Index; and 2nd in Payday Loans Search Interest. From January 2020 to July 2020, Oklahoma ranks 20th in Change in Average Inquiry Count.
1. New York
Hosts to the financial capital of the world, citizens of the Empire State these days could use a handout. New York ranks 8th in Loan Search Interest Index; 7th in Payday Loans Search Interest; and 3rd in Home Equity Loan Search Interest Index. From January 2020 to July 2020, New York ranks 18th in Change in Average Inquiry Count.
