Study: 35 Percent of American Adults Have a Debt in Collections

According to a new study (PDF) from the Urban Institute, 35 percent of adults in the United States have a debt in collections reported in their credit history.

Nevada, which was hit hard by the mortgage crisis, topped the list with 47 percent of people who have a credit file having a debt in collections. The Silver State also had the highest average collections debt at $7,198.

Twelve other states and the District of Columbia also had more than 40 percent of adults with a credit file that reports a debt in collections. Aside from Nevada, the South was the hardest hit:

• Alabama
• Arkansas
• Florida
• Georgia
• Kentucky
• Louisiana
• Mississippi
• New Mexico
• North Carolina
• South Carolina
• Texas
• West Virginia

The Upper Midwest fared the best, with Minnesota and North and South Dakota reporting around 20 percent with reported debt in collections.

Among Virginia metropolitan statistical areas, Richmond had an average total debt of $62,323. Virginia Beach reported an average debt of $65,052, while the Washington metropolitan area had an average debt of $95,560.