America can be considered the land of a variety of things. It can be called the land of opportunity or the land of freedom. It can even be referred to the land of financial freedom. Unfortunately, America can also be considered the land of frivolous spending and delinquent debt. It is sad, but completely true. In fact, there are more than a third of American citizens who are currently struggling with financial debts. The debts include the inability to pay current bills on time or in the full amount, pay off loans or credit card bills, or having items repossessed due to non-payment. Most of the debt is sitting in collections with creditors constantly contacting debt holders in an effort to collect payments. If you are eager to handle your delinquent debt, keep reading for more information on delinquent debts and how to handle it.
Facts about Delinquent Debt
When it comes to delinquent debt, there are a few statistical facts that may shock you. These alarming numbers and facts may come as a surprise to you, but to finance professionals, these numbers and facts are typical and pretty much expected.
- Total Americans with Debt in Collections = 77 million
There are about 35% of adult individuals that have debts in either collections or reported on their credit statements. That percentage totals to 77 million people. That number does not even include mortgage debts. The only debts included are credit card debts, bill debts, and other consumer debts.
- The most common victims of delinquent debt are low-income individuals.
This may not be as surprising to know that low-income individuals are the majority when it comes to delinquent debt, and the explanation comes as no surprise either. Typically, the areas that house the high-income earning individuals do not suffer as much from being in debt. Low-income individuals struggle most with debt because they do not have the earnings to cover making payments toward debts and making a living.
- Many are unaware of debts that are in the collections stage.
This may be shocking, but most people do not even know that their debt has reached collections. Most creditors place your account in collections without informing you first. Then, when you find out, it is usually by letter or phone call informing you that your debt has been taken over by a certain company in an effort to collect a debt. Sometimes, you do not find out at all until you are attempting to get a loan or make a big purchase.
How to Handle Delinquent Debt
Now that you have some information on delinquent debt, it is time to inform you of ways you can handle your debt. The bad news is that the process could be a bit lengthy and will involve tons of hard work, determination, and patience. The good news is that there are a variety of people and companies who are willing to help you solve your delinquent debt situation. Below is more information on handling delinquent debt:
- Request a copy of your credit report from the Annual Credit Report website. This site is approved by the government and is the perfect place to get your credit report every year. Your credit report will let you know of any debts currently in collections and the contact information of creditors.
- If you see a debt that you do not recognize, report the entry to the credit bureau immediately. They will be able to direct you on how to properly report the entry. You may also need to contact the creditor to tell them about the entry and inform them that because it has been added in error, you are working to get the debt removed.
- If you discover that you owe some or all of the creditors on your credit report, you have limited options on how to get rid of them. In some cases, agencies in charge of collections will allow a portion to be paid instead of the full amount. The collections agency may even allow you to take care of the debt by paying installment payments. Before you decide on any method of paying the debts, make sure that what you think the debt is matches or comes close to the amount that is currently in collections.
With the help of collections agents, the debt numbers for Americans have decreased over the years. In turn, that means that the overall American economy has improved. However, debt still remains a big problem for the country and more help is needed in an effort to decrease debt as a whole. You cannot control what others do, but you can take care of your own delinquent debt in an effort to help the economy. Take into consideration all of the suggestions given to help you eliminate your debt, and do your part in making the economy better.