A 2026 study by EY (Ernst & Young) breaks down debt settlement by state, showing where clients live, how much debt they settled, and how much they saved. Commissioned by the Association for Consumer Debt Relief (ACDR), a debt relief industry trade group, the study covers an estimated 4.3 million clients who enrolled from 2016 to 2022 in 28 states and Washington, D.C.
The clearest pattern is how consistent savings were. In every state the study covers, net savings after fees came to about 27% to 32% of the debt clients settled. Debt settlement clients were also spread across the states roughly in line with state populations, so the biggest states had the most clients. Here’s where your state ranks.
Debt Settlement by State at a Glance
- Similar savings rates: In every state, net savings came to about 27% to 32% of settled debt.
- States covered: EY’s state data covers clients in 28 states and Washington, D.C.
- Most clients: California had an estimated 676,000 clients, more than any other state.
- Highest savings rate: Clients in Washington, D.C., saved about 32% of their settled debt after fees, the highest rate in the study.
Savings Rates Were Similar in Every State
Clients’ savings, measured against the debt they settled, were close from state to state. Across EY’s data, net savings came to about 30% of settled debt. In every state, the rate fell between about 27% and 32%, and in all but three, it fell between 29% and 31%. Washington, D.C., had the highest rate, at about 32%.
That means clients in South Dakota or Nevada saved about the same share of their settled debt as clients in California or New York, even though the states’ totals were far apart.
Which States Have the Most Debt Settlement Clients?
EY’s main results cover clients who enrolled from 2016 to 2022, which gave every client at least three years in a program before EY analyzed the data. Of the estimated 4.3 million clients in that group, about 48% lived in California, Texas, Florida, or New York. Those are also the four most populous states in the study, home to about 47% of its adults, according to U.S. Census Bureau estimates. Pennsylvania came next, the only other state with more than 250,000 clients.
Source: EY, Debt Settlement Program Outcomes, 2016–2025, p. 14, Table 10
Fourteen states had more than 100,000 clients each.
Which States Have the Most Clients per Adult?
Because client counts follow population, the totals mostly show which states are biggest. To compare states of different sizes, we divided each state’s client count by its adult population, using the Census Bureau’s 2020 estimates of residents 18 and older. Across the 28 states and Washington, D.C., there were about 23 debt settlement clients for every 1,000 adults.
New Mexico had the highest rate, at about 31 clients per 1,000 adults, followed by Arkansas and Maryland at about 28. California, which had the most clients overall, ranked 19th, at about 22 per 1,000. Most states fell between about 16 and 28 clients per 1,000 adults.
| Rank | State | Clients per 1,000 adults |
| 1 | New Mexico | 30.5 |
| 2 | Arkansas | 27.7 |
| 2 | Maryland | 27.7 |
| 4 | Alabama | 26.3 |
| 5 | Texas | 26.0 |
| 6 | Florida | 25.9 |
| 6 | Louisiana | 25.9 |
| 8 | Missouri | 25.8 |
| 9 | Oklahoma | 25.3 |
| 10 | Arizona | 25.2 |
| 11 | Nebraska | 25.0 |
| 12 | Nevada | 24.8 |
| 13 | North Carolina | 24.6 |
| 14 | Pennsylvania | 24.3 |
| 15 | Alaska | 23.5 |
| 15 | Indiana | 23.5 |
| 15 | New York | 23.5 |
| 18 | South Dakota | 22.4 |
| 19 | California | 22.0 |
| 20 | Tennessee | 21.9 |
| 21 | Kentucky | 21.8 |
| 22 | Mississippi | 21.6 |
| 23 | Michigan | 20.2 |
| 24 | Massachusetts | 19.6 |
| 25 | Colorado | 18.2 |
| 26 | Wisconsin | 16.5 |
| 27 | Utah | 16.3 |
| 28 | Washington, D.C. | 14.6 |
| 29 | Kansas | 2.7 |
Which States Saved the Most per Client?
Net savings is how much clients’ debts were reduced through settlement, minus the fees they paid. EY measures it against what clients owed on each debt just before it settled. Because total savings mostly follow client counts, a fairer way to compare states is savings per client.
These states had the highest net savings per client:
- Washington, D.C.: about $5,380
- Massachusetts: about $5,170
- Alaska: about $5,150
- New York: about $5,040
- South Dakota: about $5,000
In states where clients settled larger balances, they saved more dollars per client, even though the share they saved was about the same. In total dollars, California clients saved the most, an estimated $3.25 billion, and Texas, Florida, New York, and Pennsylvania were the only other states above $1 billion.
How Much Debt Clients Settled in Each State
Clients in EY’s study settled an estimated $66.2 billion of debt, measured as the balance on each debt just before it settled. California led with $10.8 billion settled debts, followed by Texas with $8.8 billion, Florida with $6.8 billion, and New York with $6.3 billion. In all, clients in 19 states settled more than $1 billion of debt each.
States rank in exactly the same order by settled debt as they do by total net savings, and in nearly the same order by number of clients.
Where Your State Ranks
The table below ranks all 28 states and Washington, D.C., by net savings per client, along with each state’s totals.
| Rank | State | Net savings per client | Savings rate | Net savings (millions) | Settled debt (millions) | Clients |
| 1 | Washington, D.C. | $5,380 | 31.9% | $43 | $135 | 8,000 |
| 2 | Massachusetts | $5,170 | 29.4% | $569 | $1,934 | 110,000 |
| 3 | Alaska | $5,150 | 29.1% | $67 | $230 | 13,000 |
| 4 | New York | $5,040 | 29.9% | $1,896 | $6,346 | 376,000 |
| 5 | South Dakota | $5,000 | 29.5% | $75 | $254 | 15,000 |
| 6 | Pennsylvania | $4,960 | 29.9% | $1,246 | $4,168 | 251,000 |
| 7 | California | $4,810 | 30.0% | $3,250 | $10,822 | 676,000 |
| 8 | Maryland | $4,800 | 29.4% | $638 | $2,168 | 133,000 |
| 9 | Nevada | $4,750 | 30.6% | $285 | $932 | 60,000 |
| 10 | Michigan | $4,660 | 30.1% | $745 | $2,476 | 160,000 |
| 11 | Texas | $4,650 | 29.9% | $2,641 | $8,846 | 568,000 |
| 12 | Colorado | $4,630 | 30.4% | $380 | $1,248 | 82,000 |
| 12 | Wisconsin | $4,630 | 29.8% | $352 | $1,182 | 76,000 |
| 14 | Florida | $4,620 | 30.2% | $2,070 | $6,848 | 448,000 |
| 15 | Arizona | $4,610 | 29.7% | $646 | $2,173 | 140,000 |
| 16 | Nebraska | $4,590 | 28.9% | $170 | $588 | 37,000 |
| 17 | Arkansas | $4,550 | 29.9% | $291 | $972 | 64,000 |
| 18 | New Mexico | $4,480 | 29.4% | $224 | $763 | 50,000 |
| 19 | Missouri | $4,460 | 29.4% | $548 | $1,866 | 123,000 |
| 20 | Indiana | $4,450 | 29.4% | $543 | $1,850 | 122,000 |
| 21 | Oklahoma | $4,360 | 29.2% | $331 | $1,133 | 76,000 |
| 22 | North Carolina | $4,350 | 30.0% | $870 | $2,904 | 200,000 |
| 23 | Kansas | $4,330 | 27.4% | $26 | $95 | 6,000 |
| 24 | Utah | $4,050 | 29.3% | $154 | $526 | 38,000 |
| 25 | Louisiana | $3,980 | 29.8% | $366 | $1,229 | 92,000 |
| 26 | Alabama | $3,930 | 30.2% | $405 | $1,343 | 103,000 |
| 27 | Kentucky | $3,920 | 29.7% | $298 | $1,003 | 76,000 |
| 28 | Mississippi | $3,900 | 30.7% | $191 | $623 | 49,000 |
| 28 | Tennessee | $3,900 | 29.6% | $460 | $1,555 | 118,000 |
What the State Numbers Show
EY’s look at debt settlement by state shows how consistent the results were. In every state the study covers, net savings after fees came to about 27% to 32% of the debt clients settled. California, Texas, Florida, and New York led in clients and total savings, in line with their large populations. Measured per adult, most states had between about 16 and 28 clients per 1,000 adults.
Frequently Asked Questions
Which state has the most debt settlement clients?
California had the most debt settlement clients in a 2026 study by the accounting firm EY (Ernst & Young) of an estimated 4.3 million clients who enrolled from 2016 to 2022. About 676,000 of them lived in California, followed by Texas (568,000), Florida (448,000), and New York (376,000). Measured against adult population, New Mexico had the most, at about 31 clients per 1,000 adults, based on U.S. Census Bureau figures.
Which states are included in the EY debt settlement study?
EY’s 2026 debt settlement study covers 28 states and Washington, D.C. The states are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, and Wisconsin.
Does where you live affect how much you save with debt settlement?
Not by much. In a 2026 EY study of debt settlement clients who enrolled from 2016 to 2022, net savings after fees came to about 30% of settled debt overall, and the rate stayed between about 27% and 32% in every state the study covers.
How much do people save with debt settlement in my state?
It varies by state, mostly with how much debt clients settle. Based on EY’s 2026 debt settlement study, net savings after fees averaged about $4,630 per enrolled client across the 28 states and Washington, D.C., it covers. That ranged from about $3,900 per client in Mississippi and Tennessee to about $5,000 or more in Washington, D.C., Massachusetts, Alaska, New York, and South Dakota.
How common is debt settlement in my state?
About 23 of every 1,000 adults enrolled in debt settlement from 2016 to 2022 across the 28 states and Washington, D.C., covered by a 2026 EY study, based on U.S. Census Bureau population figures. New Mexico had the highest rate, about 31 per 1,000 adults, followed by Arkansas and Maryland at about 28. Most states fell between about 16 and 28 per 1,000.
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