One out of three Americans has debt in collections

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Major news sources today shared a recent report from the Urban Institute, which makes the bold claim that one in three Americans with a credit file has a debt that is in collections.

The article quotes Caroline Ratcliffe, a senior fellow at the Urban Institute: “Most people wouldn’t blink if told that the majority of Americans carry some debt. But they would be shocked to learn that reported debt in collections is pervasive and threads through nearly all communities. Delinquent debt can harm credit scores, which can tip employers’ hiring decisions, restrict access to mortgages, and even increase insurance costs.”

Federal laws including the Fair Debt Collection Practices Act and the Fair Credit Reporting Act may help consumers in Michigan who face these difficulties. Negotiating a binding settlement and working with creditors to satisfy their claims is possible. In addition, for some, Bankruptcy is an option.

I know from the work I’ve done that post-due debts are more than a headache. Creditors are very interested in getting paid, and debtors are interested in relief. If you have a debt that is in collections or a case that involves bad debt, contact my office to see how I can help. I serve clients in Oakland, Wayne, and Macomb Counties.

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