24% of Americans with a credit record are behind on their debts
Summary
About 24% of Americans with a credit record are behind on medical bills, student loans, or auto and retail loans, according to an Urban Institute analysis. The report links rising living costs and interest rates to payment difficulties and finds higher rates of debt in collections among people in communities of color.Key Facts
- The median balance owed by people behind on payments was $2,913.
- In communities of color, 30% of people with credit records were behind on payments; their median debt in collections was $3,009.
- The Urban Institute’s analysis used more than 10 million credit records and U.S. Census data.
- The share of Americans with debt in collections rose by about one percentage point from 2025, when it was below 23%.
- Credit card balances reached a record $1.29 trillion, nearly 70% higher than five years earlier, according to the Federal Reserve Bank of New York.
- Almost 16% of student loan borrowers were behind on payments.
- About 3% of Americans had medical debt in collections, with a median balance of $1,492; the measure excludes credit card debt from health care costs.
- Fifteen states have passed laws barring health care providers from reporting medical debt to credit rating agencies.
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