CHICOPEE, Mass. (WWLP) – A new Urban Institute Study report reveals a harsh reality that one in three adults in the U.S. face.
Researchers found that one third of Americans with credit history struggle to pay off their debt, and being behind on payments has placed their accounts “in collections.” Debt in collections can hurt your credit scores and increase insurance costs. Some western Mass. residents weren’t surprised when they heard the average amount owed was $5,200.
“A lot of people are out of work or have been out of work. Okay. And especially, I’m thinking of college students who have graduated and have loans and they are not getting jobs,” said Carolyn Groves of South Hadley.
The study reviewed non-mortgage debt, including credit card bills, car loans, medical bills and child support payments.