Over 38 percent of AZ residents in debt collection - Tucson News Now

Over 38 percent of AZ residents in debt collection

TUCSON, AZ (Tucson News Now) -

Back to school shopping being put on a credit card?  Not paying off that credit card in a timely manner could very well come back to hurt a shopper in the end. According to researchers over 35 percent of Americans have some form of debt in collections. 

That works out to be about every third person that passes on the street, has debt in collections.  Urban Institute did the research and they say consumers have fallen behind on credit cards, hospital bills, auto loans and even gym memberships.  Non-payment of those bills after 180 days leads to the amount being put into collections. 

Researchers say this could hurt consumer credit scores and job prospects.  

Here is how Arizona did compared to the nation?  The state has over 38 percent of residents in debt collection with an average debt of $6,200.  As for Tucson over 36 percent of resident have debt in collections and the average is $5,300. 

Financial advisor, Drew Blease has some tips to help get out of debt - make a budget, look at that budget and cut out anything you absolutely do not need and funnel it to the different people you owe.  

According to the federal government the collection industry is booming, it employs 140,000 people and workers recover $50 billion a year. 
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