Counties of U.S. Debt Growing Biggest During COVID-19 – 24/7 Wall St.

0

Special report

Americans appear to be returning to their pre-pandemic credit habits, causing US household debt to hit a record high $ 15.24 trillion in the summer, according to a November report by the Federal Reserve Bank of New York. All major sources of credit – mortgages, auto loans, student loans, and credit card balances – are heading towards or above pre-pandemic levels.

However, a review of household economic health during the peak of the coronavirus pandemic in 2020 shows that Americans took some of that pandemic-related emergency stimulus money and paid off some of their debts.

The result? From February to October 2020, mortgage defaults decreased and creditworthiness rose. The percentage of people with debt collections fell slightly, while the median debt collection rose by just $ 16 to $ 1,849, according to the nonprofit think tank Urban Institute.

Debt collection occurs when a creditor, e.g. B. a credit card issuer who writes off the claim after a certain period of non-payment, usually after 180 days, as a loss and sells it to a debt collection agency. Then the borrower’s credit score goes down and the stressful calls to the debt collection agency begin.

To identify the 50 counties where debt collection increased the most during COVID-19, Wall St. 24/7 ranked counties using the change in median debt collection from February 2020 to October 2020 Data from the Urban Institute report.Credit health during the COVID-19 pandemic. “Only 2,225 rural districts with data were taken into account.

The amount of debt collected varies geographically, but is typically higher in sparsely populated areas with significant numbers of low income earners and fewer local job opportunities compared to more densely populated and economically active areas. (This is the worst county to live in.)

For example, Elko, Nevada, a county of approximately 20,500 residents 230 miles west of Salt Lake City, saw its average debt increase from $ 1,090 to $ 3,754 from February to October 2020. About one in five residents – with a credit reporting agency – of this northern Nevada County had debt collection. (Find out the counties with the highest number of medical debt collections.)

Average collection debt ranged from $ 1,765 in Kingfisher, Oklahoma, to $ 3,989 in Callahan, Texas, among counties where household debt rose significantly.

Here are the counties where household debt increased the most during the COVID-19 pandemic
Click here to see our detailed methodology

Share.

About Author

Comments are closed.