The percentage of accounts in collections and the average size of those debts both shrank, according to new data from the New York Fed.
The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.
The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.
A look at bills being collected by collection agencies shows how a bulge of bad debt has worked its way through the consumer economy after the Great Recession.
For people with debt in collection, the average amount owed fell to $1,376 in the first quarter of 2015, according to the Federal Reserve Bank of New York, the lowest mark since the fourth quarter of 2010. The Fed analyzes a sample of credit reports to track the debt figures.
Fewer people are getting calls from collectors as well. The 13.6 percent of consumers with one or more debts in collection was up slightly from the fourth quarter of 2014, but remained lower than any other period since the fourth quarter of 2008.
The bank issued the data May 12 as part of its quarterly Household Credit and Debt report.
To use the graphic on your site, use the following code: