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1 in 3 U.S. adults have ‘debt in collections’

1 in 3 U.S. adults have 'debt in collections'
Posted: August 7, 2014 at 8:00 am   /   by   /   comments (0)

CNN Money reports on some scary US debt statistics…

An estimated 1 in 3 adults with a credit history — or 77 million people — are so far behind on some of their debt payments that their account has been put “in collections.” That’s a key finding from a new Urban Institute study.

It examined non-mortgage debt, including credit card bills, car loans, medical bills, child support payments and even parking tickets. The debt in collections ranged from as little as $25 to a whopping $125,000. But the average amount owed was $5,200.

Geographically, no area of the country is untouched. Among the states, Nevada had the highest percentage of residents with debt in collections — 47% – as well as the highest average amount owed – $7,198. That was helped in part by the Las Vegas metro area, where 49% of residents had debt in collections.

By contrast, North Dakota had the lowest percentage of residents with debt in collections at just 19%, while the District of Columbia had the lowest average dollar amount owed per person at $3,547.

Regionally, the South had the highest percentage of people — as high as 44% in some parts; while the Northeast had the lowest at less than 30%.

And among the 100 largest metropolitan areas, Minneapolis-St. Paul had the lowest percentage of residents with debt in collections at 20%, while McAllen, Texas claimed the highest percentage at 51%.

Read the full story from Money.cnn.com >

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