Skip to content

INDEBTEDNESS: One in three U.S. adults have 'debt in collections'

By Catholic Online (NEWS CONSORTIUM)
7/29/2014 (3 years ago)
Catholic Online (

Credit card bills, child support, and parking tickets - it's all adding up

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.

One in three American adults are so far behind in personal debt that many of their accounts have been referred to collections.


By Catholic Online (NEWS CONSORTIUM)
Catholic Online (
7/29/2014 (3 years ago)

Published in Business & Economics

Keywords: Indebtedness, credit cards, personal debt, credit reports, 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.

Debt in many collection accounts ranged from as little as $25 to a whopping $125,000. Overall, the average amount of debt owed was $5,200. These figures proved true for all area of America.

SAVE Iraqi Christians from Genocide --

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.


'Help Give every Student and Teacher FREE resources for a world-class Moral Catholic Education'

Copyright 2018 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for FEBRUARY 2018
Say 'No' to Corruption.
That those who have material, political or spiritual power may resist any lure of corruption.


More Business & Economics

Stock market tumbles, is a recession on the way? Watch

Image of The stock market took a tumble yesterday but may recover today. Nobody is certain of what's next.

Global markets have dropped for the past few days, and just this morning have rebounded. It remains to be seen if the recovery is ... continue reading

Is free money a Christian solution to economic problems? Watch

Image of Is there a Christian solution to our economic problems?

The world is richer and more productive than ever before in history. Yet, income inequality is growing the poverty is on the rise. Middle ... continue reading

Income inequality - Here's why world poverty and hunger remain a problem, frustrating Pope Francis' efforts to solve the crisis Watch

Image of Pope Francis has spearheaded a campaign to end world hunger by 2020.

When Pope Francis accepted the chair of St. Peter, he pledged to end world hunger by 2020. By all appearances, it was an easy win. The math ... continue reading

Jobless claims historic low! - Why workers are getting raises this year, thanks to President Trump Watch

Image of Workers are finally being dealt back into the American Dream, thanks in part to President Trump's economic policies.

Say what you will about President Trump, but American workers are starting to "win" under his administration. Jobless claims have reached a ... continue reading

Retailers are feeling great again, but how about all those tired workers? Watch

Image of Amazon workers are being replaced by robots, but they aren't being laid off either. The growth of online retail means they can fill other roles, as the workload increases.

Early reports from the retail sector show that sales between November 1 and Christmas Eve were up 4.9 percent over last year. Workers ... continue reading

Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Learn about Catholic world

Catholic Online
Inform - Inspire - Ignite

Catholic Online Saints
Your saints explained

Catholic Online Prayers
Prayers for every need

Catholic Online Bible
Complete bible online

Catholic Online News
Your news Catholic eye

Daily Reading
Today's bible reading

Lent / Easter
Death & resurrection of Jesus

Advent / Christmas
Birth of Jesus

Rest of Catholic Online
All Catholic world we offer

Products and services we offer

Catholic Online Shopping
Catholic medals, gifts & books

The California Network
Inspiring streaming service

Advertise on Catholic Online
Your ads on

Catholic Online Email
Email with Catholic feel

Catholic Online Singles
Safe, secure Catholic dating

The California Studios
World-class post production service

Learn the Catholic way

Catholic Online School
Free Catholic education for all

Student Classes
K-12 & Adult Education Classes

School Teachers
Teacher lesson plans & resources

Support Free Education
Tax deductible support Free education

Connect with us online

Catholic Online on Facebook
Catholic social network

Catholic Online on Twitter
Catholic Tweets

Catholic Online on YouTube
Enjoy our videos

Catholic Online on Instagram
Shared Catholic moments

Catholic Online on Pinterest
Catholic ideas style inspiration

Catholic Online Logo

Copyright 2018 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 2018 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.