INDEBTEDNESS: One in three U.S. adults have 'debt in collections'
By Catholic Online (NEWS CONSORTIUM)
7/29/2014 (2 years ago)
Catholic Online (www.catholic.org)
Some call it the American way, and it's become a most uncomfortable fact of life for many Americans. Personal debt is at an all-time high, and at least one in three Americans, 77 million people, have had their debt referred to collection agencies as a result.
One in three American adults are so far behind in personal debt that many of their accounts have been referred to collections.
LOS ANGELES, CA (Catholic Online) - According to a new report by the Urban Institute study, an examination of non-mortgage debt, including credit card bills, car loans, medical bills, child support payments and even unpaid parking tickets have many U.S. citizens over the barrel.
The state of Nevada had the highest percentage of residents with debt in collections at 47 percent, as well as the highest average amount owed, $7,198. That was helped in part by the Las Vegas metro area, where 49 percent of residents had debt in collections.
The state of North Dakota had the lowest percentage of residents with debt in collections at just 19 percent, while the District of Columbia had the lowest average dollar amount owed per person at $3,547.
The American southern states had the highest percentage of people, as high as 44 percent in some parts, while the Northeast had the lowest at less than 30 percent.
And among the 100 largest metropolitan areas, Minneapolis-St. Paul had the lowest percentage of residents with debt in collections at 20 percent, while McAllen, Texas claimed the highest percentage at 51 percent.
For a credit card debt, bills generally remain unpaid for six months before they are referred to collections. Time varies for other unpaid debts, such as parking tickets and medical bills.
Once an unpaid debt is in collections, it can follow one of three courses, according to the Urban Institute report. The creditor can charge it off and sell it to a debt buyer, put the account into default or seek to collect what's owed through an in-house department or a third-party debt collector. In either case, the cost to the consumer is high and long-lasting.
"[It] can harm credit scores, which can tip employers' hiring decisions, restrict access to mortgages, and even increase insurance costs," Caroline Ratcliffe, a senior fellow at the Urban Institute says.
The case can stay on your credit report for up to even years even if you've paid off the debt and lower your credit score for years.
Copyright 2017 - Distributed by THE CALIFORNIA NETWORK
Pope Francis Prayer Intentions for FEBRUARY 2017
Comfort for the Afflicted. That all those who are afflicted, especially the poor, refugees, and marginalized, may find welcome and comfort in our communities.
During an interview with Dutch newspaper Straatinieuws, Pope Francis explained: "I would like a world without the poor. We must fight for ... continue reading
Is YOUR job in danger? Thousands of Americans to lose jobs as 218 iconic American brands collapse Watch
An iconic American brand with a century-long history is shutting down hundreds of stores in the face of bankruptcy. LOS ANGELES, CA ... continue reading
Yes, Millennials, you have a problem, but it's not your fault. This is the conclusion of Simon Sinek, the famous leadership consultant who ... continue reading
Third of millennial adults still living with parents -- here's the reason why and what we had better do about it... soon Watch
Adults are living at home with their parents in numbers not seen since the Great Depression. LOS ANGELES, CA (California Network) - If ... continue reading
Donald Trump is facing a lot of criticism over his cabinet choices. He has repeatedly appointed Washington D.C. outsiders to posts within ... continue reading
by Catholic Online
- St. Polycarp: Saint of the Day for Thursday, February 23, 2017
- Daily Reading for Friday, February 24th, 2017 HD Video
- DR Congo targets churches - Convents close and religious are killed
- Scientists predict Biblical flood for California HD Video
- Daily Readings for Thursday, February 23, 2017
- Should Catholics completely reject human gene editing?
- Trump dumps Obama's transgender restroom policy: States and districts ...
- New pilgrimage route recreates Jesus' footsteps HD
- Sts. Perpetua and Felicity HD
- Daily Reading for Thursday, February 23rd, 2017 HD
- California's floods predicted by scientists, but how? HD
Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.