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More than one-third of families may struggle to find debt relief

The frequently dubbed "Great Recession" was declared over by mid-2009. However, while some segments of the nation are starting to show signs of rebounding, over one-third of American households are struggling to find debt relief. There may be families in Washington that are likewise looking for solutions for credit collection stress.

A recent study has determined that an estimated 35 percent of consumers who have a credit history have had delinquent accounts turned over to collection agencies. Moreover, these consumers seem to be concentrated in only certain sections of the country. Those who have accounts subject to collection activity appear to be located in the southern and western areas of the country where economic recovery has been slower.

The Urban Institute has discovered that, even though the sum total of debt held by American consumers has been reduced, the number of delinquent accounts has remained at fairly steady rates. The impact on those who have late accounts can be felt whenever employers or housing managers reject applications due to poorer credit ratings. While the level of debt supported by individual households can vary widely, the amount of debt does not necessarily indicate that one is delinquent. Instead, income levels are the better indicator as to whether a consumer can make payments on time.

With an average of one in three people struggling to cope with overwhelming debt, the quest for debt relief may be a high priority for many households. Those in Washington may obtain information regarding how a bankruptcy filing may provide the relief for which they are looking. It is important to understand that not all debt is dischargeable; however, being relieved of a share of overwhelming debt may allow a family enough room in the budget to once again get on top of their finances instead of their finances toppling them.

Source: Associated Press, "Study: 35 percent in US facing debt collectors", Josh Boak, July 29, 2014

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