According to the conclusion arrived at the study performed by the Urban Institute, over 1/3rd Americans do not clear their debts in good time. The study group studied the credit history of more than seven million Americans and have concluded that about thirty five percent of Americans do not clear their debts punctually. In other words, the time period for repayment of debt lapsesfor most of thesepeople with their debts have gone to collection.
According to the study, states in the south have the highest number of debt criminals.Some of these states are – Alabama, Kentucky, Georgia, Texas and Florida, among others. In thirteen of the American states, over forty percent of citizens who have taken credit have debt obligations in collections. Of them, Nevada has the highest score at 46.9% because of the recession as well as housing problems.
The study also reveals that the seventy-seven million who have debt obligations in collections owe amiddlingaverage amount of around $5,200. This estimate includes debt from bills related to medical, utility, child support, credit card expenses and membership fees.When taken as a whole, the load of debt mostly stems from mortgages. Josh Bivens, Director of research and policy has described the percentage of delinquent family units as “pretty disheartening.” According to him, the data put forward by the study group is a grim reminder that many Americans are still undergoing an economic struggle on a daily basis as a result of the recession.