Americans are finding it harder to keep up with their bills. A new Urban Institute analysis, based on US Census Bureau and credit bureau data, found that 23.5% of Americans with a credit history have debt in collections, with a median amount of $2,913.
The burden is uneven. In Jim Hogg County, south Texas, more than half of those with a credit history have debt in collections. Zip codes where at least half the population is non-white were around 50% more likely to have debt heading to collections than white communities.
In This Texas County, Over Half of Credit-Holders Have Debt in Collections
Timelines differ by debt type. Credit card debt typically goes to collections four to six months after a missed payment, and medical debt after three to six months.
Median delinquent amounts are $680 for credit cards and $1,492 for medical bills. Federal student loans typically default after 270 days, while private loans default after 180 days. The Education Department has paused involuntary collections on federal student loans, with no date set for the pause to lift. About 16% of student-loan borrowers were behind in 2026, with a median defaulted amount of $5,078.
The New York Fed says Americans owed $18.8 trillion at the end of June, with 4.7% of debt delinquent. Inflation and high interest rates are straining households, forcing some to choose which bills to pay.
