Roughly 24% of Americans with a credit record are behind on medical bills, student loans, or auto or retail loans, according to a new analysis from the Urban Institute reported by CBS News.
The median balance in collections is $2,913, the nonpartisan think tank found. In communities of color, 30% of people are behind, with a median of $3,009.
The share of Americans with debt in collections is up about one percentage point from less than 23% in 2025, according to the analysis, which examined more than 10 million credit records along with Census data.
“The increasing cost of living makes it harder for people to make payments on basic needs,” said Breno Braga, a senior fellow at the Urban Institute. He said rising interest rates this year are also making it harder for people to catch up.
Credit card balances have climbed to a record $1.29 trillion, up nearly 70% from five years ago, according to the Federal Reserve Bank of New York.
Ted Rossman, principal consumer finance analyst at the nonprofit Money Management International, told CBS that consumer prices have risen an average of 30% since 2019 and that many household budgets are at a “breaking point.”
About 16% of student loan borrowers are behind on payments, the analysis found. Louisiana has the highest share of residents with debt in collections, with a student loan delinquency rate near 22%.
Three percent of Americans have medical debt in collections, with a median balance of $1,492, according to the Urban Institute. Fifteen states bar health care providers from reporting medical debt to credit agencies, though Braga noted the debt “doesn’t mean it disappears.”
The report comes as October inflation data came in hotter than expected, raising the chances of a Federal Reserve rate hike, CBS MoneyWatch reported.
Sources: CBS News. Thee Arizona Times uses AI-assisted reporting reviewed against the sources listed.
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