Who Has Debts in Collection? In Massachusetts, 1 in 4 People Do
The collections affect everyone. Says one representative of the group, it’s a “stunning” number. And it’s all the more stunning because the study does not include 22 million low-income adults who did not have credit files, so the number is probably much higher.
How does Massachusetts rank? Even though Massachusetts has one of the highest average incomes in the country – over $90,000 – almost 25% of residents have debts in collection. The average amount is over $4,600.
For the City of Boston, 22.4% have debts in collection with an average amount of $4,800. This may be lower because the study does not include many low-income residents who are often the subject of abusive debt collection.
Worcester is slightly higher, with almost 26% of residents having debts in collection and an average amount of $4,486.
The study says that in addition to creating difficulties today, delinquent debt can lower credit scores and result in serious future consequences. Credit report information is used to determine eligibility for jobs, access to rental housing and mortgages, insurance premiums, and access to, and the price of, credit in general.
The study is freely available online here: Delinquent Debt in America
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