Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

Millions of Americans dealing with debt collectors

After you have missed several payments on a credit card balance or another outstanding debt, the creditor might decide to turn the debt over to a third-party collection agency or debt collector. Creditors do this because it is often more lucrative for them to have a debt collector attempt to collect the money than to try to do it themselves.

According to an analysis firm the Urban Institute, more than 77 million Americans currently have debt in collections, which amounts to 35 percent of Americans who have credit accounts. What that means is that millions of Americans from all over the country are currently dealing with debt collectors. 

But just because the situation is common doesn’t make it any less stressful. Having debt in collections can feel shameful and embarrassing no matter how many others are in the same boat. However, what we need to remember is that debt often ends up in collections because of circumstances out of the borrower’s control, such as illness, death or divorce. 

A Consumer Debt Counselors adviser said the slowly-recovering economy has also resulted in more debts being sent to collections over the past few years. In addition to high unemployment rates, many Americans have found themselves under-employed and unable to afford the lifestyle they enjoyed prior to the recession.

When Americans failed to adjust their standards of living to match up with their new lower incomes, debt piled up quickly. Bills then went unpaid and eventually ended up in the hands of debt collectors, the debt adviser explained.

Besides the stigma that is attached to having debt sent to collections, it can have many other negative effects on a borrower as well. For example, the damage it causes to the borrower’s credit report can make it impossible to qualify for additional credit such as a home or auto loan. That’s why it’s so important to deal with the debt that has gone into collections right away.

Check back later this week for some advice on dealing with debt collectors.

Source: The Times, “77 million Americans have debt in collections,” Adam Duvernay, September 6, 2014

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.