US Person has been posting for years that the American middle class is in perhaps, permanent decline as membership shrinks and those still deserving the
label are subjected to debt slavery. According to
new research by the Urban Institute about 77 million Americans have unpaid debts in collection. That is about 35% of consumers with credit files or data reported by major credit bureaus. The average owed is $5,178. This map shows that the most collections are taking place in the southeast and southwest. In twelve southern states more than 40% of residents with a credit file have a bill in collections:
Collections can be a lot more annoying that unpleasant telephone calls. A bill sent to a collection service stays as a negative mark on a person's credit file for up to seven years which in turn hinders chances of getting credit, renting an apartment, or even be offered a job. The Urban Institute concluded that stagnant incomes are a key factor in failure to pay indebtedness. Wells Fargo bank found that after-tax income for the bottom 20% of wage earners fell during the so-called five year recovery.
