Urban Institute Reports 23.5% of Americans Face Debt Collections

The Urban Institute reports that 23.5% of Americans with a credit history now have debt in collections, with a median debt amount of $2,913. The analysis highlights severe disparities, finding that communities of color are approximately 50% more likely to have debt in collections than white communities. In rural areas such as Jim Hogg County, Texas, more than half of residents with credit histories are facing collections.

Total American debt reached $18.8 trillion as of the second quarter of 2026. Student loan delinquency is a significant driver, with 10.6% of student loan debt 90 days or more delinquent. While the United States Department of Education has paused involuntary collections on federal student loans to implement a repayment overhaul, private loans continue to be subject to standard collection procedures.

Economic pressures including inflation, rising grocery prices, and high interest rates on loans and credit cards are cited as primary factors contributing to the current debt crisis.