More Americans claiming High Levels of Debt

A new study shows 35% of Americans have debt that has been reported to a collection agency. That could be money owed for anything from mortgages to cell phone contracts. The Urban Institute says, overall, Americans have reduced their credit card debt, since the Great Recession. However, roughly the same rate of people is still getting reported for old, unpaid bills. Caroline Ratcliffe is a senior fellow at the Urban Institute. She says it adds up. “The average amount of debt and collections is about $5,200 and when we look at the typical person that has debt and collections that is lower, about $1,300.” The institute figures stagnate wages may be preventing people from paying debt off. Others just might not know about some of the debt they owe, adds Ratcliffe. “Where incomes are lower, we see higher percent of people with debt and collections.” The study found that one in every three Americans has debt and collections reported on their credit report.