More Americans are not paying their bills on time and more have debts that have been placed with collection agencies, according to the results of a survey conducted by the National Federation of Credit Counseling. The results have led at least one mainstream media outlet to posit: Has America’s debt load reached a tipping point?
The number of individuals who are not paying their bills on time is at 25%, up from 22% a year ago. The number of individuals who reported having a debt in collections was at 8%, up from 5% a year ago. What is interesting, and troubling, is that the increases are being driven largely by more financial problems facing women. Nearly 40% of women are not paying their bills on time, according to the survey.
“Millennials, and more specifically millennial women, continue to face unique financial challenges. Reinforcing what we are seeing in our survey, recent data from Pew Research and others have shown that young women are outpacing their male counterparts in completing college degree programs, leading to more who are dealing with student loan debt and a delayed start in the workplace,” said acting NFCC president and CEO Jeff Faulkner in a statement. “Because such circumstances can sometimes contribute to missed bill payments and debts in collection early in a person’s adult life, we continue to provide financial counseling and coaching services that help struggling consumers with their evolving financial challenges.”
