According to a recent study released by the Urban Institute, more than 35% of Americans have debts and unpaid bills that have been reported to collection agencies. These adults owe an average of $5,178.00. The full study can be found here.
The study reveals that the East South Central census region (which includes Kentucky) has the second-highest percentage of people with a debt in collections, with 41.3% of people having an account in collections.
Debt collectors do not just collect unpaid credit cards, but a wide-range of debts such as:
- cell phones
- gym memberships
- book clubs
Every case is different, but many people facing debt collectors ultimately end up filing bankruptcy as a way to protect themselves, and to begin the process of rebuilding their credit.