Key facts
- The Urban Institute analysis found 23.5% of Americans with a credit history have debt in collections, median $2,913.
- In rural Jim Hogg County in south Texas, over half of those with a credit history have debt in collections.
- The Urban Institute found communities of color were around 50% more likely to have debt heading to collections than white communities.
- The analysis said median credit card delinquent debt is $680, compared to $1,492 for those behind on medical bills.
- Americans owed $18.8 trillion in debt as of the second quarter of 2026, according to the New York Federal Reserve.
- The New York Fed said 4.7% of debt had transitioned into delinquency at the end of June, with 10.6% of student loan debt 90 days or more delinquent.
An Urban Institute analysis using 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 think tank said in a report published November 10, 2026. Affordability was a central issue for voters in the midterm elections, the report said.
The analysis found wide variation by geography and community. In rural Jim Hogg County in south Texas, over half of those with a credit history have debt in collections. The Urban Institute found communities of color, defined as 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.
The time before a debt goes to collections varies by product, the analysis said. A borrower behind on credit card payments would typically go to collections four to six months after a missed payment, while medical debt is around three to six months. The analysis said median credit card delinquent debt is $680, compared to $1,492 for those behind on medical bills.
Student loan collections depend on whether the loan is federal or private. A federal student loan typically defaults after 270 days, after which a borrower can work with a servicer to rehabilitate the loan. The Education Department paused involuntary collections on federal student loans, including wage garnishment and seizure of federal benefits, while it implemented its repayment overhaul, and has not specified when the pause will lift. Private student loans typically default after 180 days of nonpayment.
The Urban Institute data showed 16% of federal and private student-loan borrowers were behind on payments in 2026, with a median defaulted amount of $5,078. Americans owed $18.8 trillion in debt as of the second quarter of 2026, according to the New York Federal Reserve, and 4.7% of debt had transitioned into some form of delinquency at the end of June, with 10.6% of student loan debt 90 days or more delinquent.
High interest rates on products such as credit cards and student loans also affect borrowers' ability to stay current, the report said. Susan Cannon, a 73-year-old, previously told Business Insider she has nearly $40,000 in debt across 19 credit cards with interest rates ranging from 12% to nearly 35%. "I've always tried to put some in savings, but it's gotten to where it's all going toward interest," Cannon said. "I just cannot get ahead."