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 JULY 2017
Lapsed Christians. That our brothers and sisters who have strayed from the faith, through our prayer and witness to the Gospel, may rediscover the merciful closeness of the Lord and the beauty of the Christian life.
The highly relevant quote, "Budgets are moral documents," has been arguably attributed to Rev. Martin Luther King, Jr. But if he didn't ... continue reading
A group of central bankers has warned that a great recession, possibly larger than the 2007-2008 recession is looming on a global scale. ... continue reading
The end of the farm as we know it has arrived - here's how we're about to change the way we grow food Watch
Farming as we know it is about to disappear. The entire disappearance may take generations to happen, and there will always be a few farms ... continue reading
Is to time to break up the monopolies? As Google, Facebook and others grow larger, calls for their breakup are emerging. There is an urgent ... continue reading
The Tesla Model 3 is a game changer for the auto industry. It is a reasonably priced, well-designed electric car that looks good. It has ... continue reading
by Catholic Online
- Vatican says report on abuse in Germany shows progress in fight ...
- Daily Reading for Tuesday, July 25th, 2017 HD Video
- Many Blessings! Family celebrates 100 children
- Statues of the Virgin Mary triumphantly return to Iraq, after defeat ...
- St. Mary Magdalene: Saint of the Day for Saturday, July 22, 2017
- Daily Readings for Saturday, July 22, 2017
- Video captures moment killer quake strikes in Greece
- Daily Reading for Monday, July 24th, 2017 HD
- Daily Reading for Sunday, July 23rd, 2017 HD
- Deadbeat Republicans, do your job or GET OUT! HD
- Daily Reading for Saturday, July 22nd, 2017 HD