Study: 35% percent in US facing debt collectors !

This is a horrible report IMO. I know there has been much discussion about the 1.2 trillion dollar student loans and the interest rates that will be very problematic for the graduates to pay back their loans. By this article every third person walking around had a debt collector not far behind.

WASHINGTON (AP) -- More than 35 percent of Americans have debts and unpaid bills that have been reported to collection agencies, according to a study released Tuesday by the Urban Institute.

These consumers fall behind on credit cards or hospital bills. Their mortgages, auto loans or student debt pile up, unpaid. Even past-due gym membership fees or cellphone contracts can end up with a collection agency, potentially hurting credit scores and job prospects, said Caroline Ratcliffe, a senior fellow at the Washington-based think tank.

hosted.ap.org...

Surprised.. thought the number would be higher due the amount of people who live on credit cards along with the high unemployment /underemployment rates ..

a reply to: 727Sky
Sounds like a good time to start a collection agency.

And maybe one of those bodegas that convert food stamps to cash.

If americans would just buy the stuff they can afford then there wouldn't be a problem. I never understood why so many Americans see no problem in having a credit( read debt ) based society.

Oh well as long as I can buy the new Iphone right?

EDIT: some more numbers

We have been warning for years that as a result of the Fed's disastrous policies, America's middle class is being disintegrated and US adults are surviving only thanks to insurmountable debtloads. But not even we had an appreciation of how serious the problem truly was. We now know, and it is a shocker: according to new research by the Urban Institute, about 77 million Americans have a debt in collections.

www.zerohedge.com...

a reply to: 727Sky

Yet another disturbing trend.

The Police State Industrial Complex is growing by leaps and bounds so you can get a job (for the State or for the for-profit prison system) subduing, spying on or imprisoning the slaves.

Health care is being nationalized so medicine is in essence turning into a government job.

So what we'll be left with is one half of the people sponsored by the State in conjunction with the private sector, preying on the the other half.

Its almost a though you have to join the Dark Side so you can avoid being a victim.

I am presently debt free...
but I also have no credit rating ~~~ there is just no info to report... I pay for expected things in 30 days avg
if I do not have the money on me it will take about two weeks to sell some stocks

but I have one continual problem.... its the Property Taxes due each year
I have been informed that the Tax papers go out in Oct, so you have 2 months to pay those Thousands of bucks or set off the late fees=penalties phase on the unpaid Property Tax balance

I keep several different Credit Union accounts going and have just over 2/3'rds the expected Tax Amount at-the-ready
~hoping the banks & CU do not do the Bail-In's ~
But there is the potential that the City/County will re-assess the property value or raise the millage without warning !
thereby making a timely tax payment next to impossible...

.example in the last 4 years the annual property tax has been more than $475.00 in variation...
I guess its I am in a vacation community & the '2nd home' tax status is a tax rate increase Easy Target



don't blame me either... I voted Libertarian, Gary Johnson

edit on th31140665093829222014 by St Udio because: add

In the credit based system, the banks win and the little guy loses.

It has been proven that ppl with no ill intentions can fall behind in debt through no fault of their own (life will throw you a curve ball). The sensible and moral thing to do is put a limit when a person tries to go into their overdraft. The payment stops, just like not having any real money to pay for something.

But sensible and moral are not in the vocabulary of the money lenders. Putting everything on the shoulders of the ppl borrowing money and is 100% their fault is exactly what the money lenders want to hear. Money lenders giving credit to ppl who cannot possibly repay the debts etc. so they can take their homes. It's been proven ppl will get themselves into a bind and the responsibility is not just theirs but on the system which allows them, instead of saving these ppl from themselves they actively want ppl to be in debt.

If you want to talk about personal responsibility also talk about responsibility in making a better system that prevents ppl going into debt as much as possible since it's been proven ppl will fall behind for one reason or another, and not because they have huge character flaw / irresponsible.

There is such a thing as irresponsible lending and a system which is predatory too.

a reply to: St Udio

Property taxes and Independent School taxes .... I was paying close to $6000 a year for both the property I spent less than 6 months a year at.. I sold everything (at a loss I might add) and moved to a place where we actually own the property we live on and if I had young kids to send to school I would pay as they go.

Property taxes means you do not own anything... Don't believe it try not paying them for a few years. Even though I am now living overseas the IRS still wants to tax me and my wife on any interest we might accrue at our bank over seas.. Same if I were to get a job... Pay the IRS.. It takes money to run the war machine and pay all the bureaucrats not to mention support ??% of a population who either does not pay taxes or is on welfare. Either way I got mostly out of that system with a ticket for an airoplane... Song