When someone misses payments on a line of credit or a loan for an extended period of time, the creditor may sell it to a debt collection agency. This allows the original lender to recoup some of the money immediately and gives the collection agency the authority to get the debt from the borrower. Having an account in collections can wreak havoc on your credit score and stay on your credit report for up to seven years.
To identify the cities where people have the most collection accounts, and consequently where people are having the most financial difficulty, WalletHub compared 100 cities based on four key metrics, including the average number of collection accounts and the average balance, as well as the change in those values between Q1 2024 and Q2 2024.
CASSANDRA HAPPE, WALLETHUB ANALYST
To read more and view the list of cities, click here