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Delinquent Debt Statistics - Late Payments, Past Due Accounts, Debt Collections

Four Disturbing Delinquent Debt Stats and What to do About Them

Last Updated: January 15, 2015

Falling behind on your monthly payments can be a pretty powerless feeling. But you’re not alone, as proven by the Urban Institute’s July 2014 report, Delinquent Debt In America.

The good news is, there is always something you can do to get control of your debt and not to become another delinquent debt statistic. Below are four common debt scenarios along with what you can to do avoid getting further and further into debt.

#1. Roughly 1 out of 20 people with a credit file (5.3 percent) are at least 30 days late on a credit card or other non-mortgage account (e.g., automobile loan, student loan).

Being late on a credit card payment is one thing. Being 30 days late (or more) is quite another. That’s when you get reported to the credit bureaus and your credit starts taking a hit.

So, if you’re in the habit of paying late – on credit cards or anything else – it’s time to snap out of it.

It’s not only costing you in the form of late fees, but also in a lowered credit score that means higher interest rates going forward or the inability to qualify for new credit at all.

What to Do About It

#2. Among people with debt past due, the average amount they need to pay to become current on that debt is $2,258.

You need not have over $2,000 in delinquent debt for it to feel too intimidating to tackle. It’s all relative to how much you have left over to put toward your debt at the end of the month, which may be nothing at all.

What to Do About It

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#3. 35 percent of people with credit files have debt in collections reported in these files.

Once a debt goes into collections, your problem is compounded. You’re not only behind on your debt payments; you’re also being hounded for them by unrelenting debt collectors.

What to Do About It

#4. Among people with a report of debt in collections, the average amount owed is $5,178.

If you have thousands of dollars of debt in collections, it may seem insurmountable. But people climb their way out of debt every day, and there’s no reason you cannot be one of them.

What to Do About It

Read the Urban Institute’s Delinquent Debt in America in its entirety.

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