Debtor Nation: 35 Percent of Americans Owe Bills to Collection Agencies

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http://www.alternet.org/economy/debtor-nation-35-percent-americans-owe-bills-collection-agencies




It's official: America is being crushed under a mountain of debt.

A new study by the Urban Institute says that over 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies. This means the bill is so overdue (generally at least 180 days) that the account has been closed and placed in collections.

That comes to 77 million souls who face the sleepless nights and anxiety that comes from an inability to meet debt obligations. These citizens owe an average of $5,178 each (median $1,349).

It's happening to us in all walks of life.

For some, it's an unpaid credit card bill. For others, it's a medical bill they couldn't pay on time. Students are behind on their debt payments. Homeowners can't pay their mortgages. From past-due gym membership fees to delinquent utility bills to unpaid parking tickets, Americans owe more than they can pay, and face damaged credit scores and job prospects once collection agencies get their hooks into them. This creates a vicious cycle in which people become less able to pay debts, which then continues to mount.