Rising costs leave 24% of Americans with a credit record behind on debts, analysis finds
Collections are increasing
The Urban Institute reported that about 24% of Americans with a credit record have debt in collections this year. Its analysis drew on more than 10 million credit records and U.S. Census data. The institute put the share below 23% in 2025, a rise of about one percentage point.
Breno Braga, a senior fellow at the Urban Institute, said rising living costs make it harder for people to pay for basic needs. He attributed differences in debt burdens across the country partly to lower incomes and higher poverty rates in some areas.
Prices and balances climb
U.S. consumers’ credit card balances reached $1.29 trillion, a record, according to figures from the Federal Reserve Bank of New York. The amount is nearly 70% higher than five years ago.
Consumer prices have increased by an average of 30% since 2019, Rossman noted. The article does not provide Rossman’s first name or title.
Medical debt adds pressure
Many people with health insurance still face large medical bills, reflecting limited coverage and the high cost of care in the United States. The Urban Institute says 3% of Americans have medical debt in collections, with a median balance of $1,492.
Key points
- About 24% of Americans with a credit record have debt in collections this year.
- Credit card balances hit a record $1.29 trillion, nearly 70% above their level five years ago.
- Medical debt in collections has a median balance of $1,492.