PPP loans, 401k loans and the number of loans just needed to get by—and whether to take them—are major topics of discussion in the coronavirus-fueled economic environment.
With nearly 39 million Americans losing their job during the coronavirus pandemic and 44 percent of Americans expecting to go into more debt because of the crisis, WalletHub took a look at the states where people believe they need loans the most.
In order to determine where people are most in need of loans as a result of the coronavirus pandemic, the consumer finance site WalletHub says it combined internal credit report data with data on Google search increases for three loan-related terms in the 50 states and the District of Columbia.
“Greater interest in getting a loan indicates that more people in the state are struggling to make ends meet,” the site notes. It also implies there may be more strain on the state’s public assistance programs in the near future, and the state may experience a deeper recession than others.
However, borrowing “should be a last resort during the COVID-19 pandemic, after people have exhausted all other options—from federal and state government benefits to relief from creditors,” according to WalletHub analyst Jill Gonzalez. “Most major banks and credit unions will offer some form of assistance to people affected by the pandemic, such as delayed due dates or waived finance charges, but you have to ask.”
Below are the results:
States where people need loans the most
- North Carolina
- New York
- Nebraska
- Minnesota
- Kansas
- Washington
- Tennessee
- Indiana
- Texas
States where people need loans the least
- District of Columbia
- Montana
- New Hampshire
- South Dakota
- Delaware
- Hawaii
- North Dakota
- Alaska
- Rhode Island
- Vermont
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
