When it comes to debt delinquency, Louisiana leads the nation.
A recent study by Urban Institute gave Louisiana a debt delinquency score of 8.7. This number represents a percentage of how many more Louisiana residents have past-due debt on their credit reports than people across the country. Baton Rouge and New Orleans are listed as two of the top 100 cities in the nation with past-due debts.
The Urban Institute graded states across the nation on past-due credit card debt, mortgages, auto loans, hospital bills, and more. The study even included past due gym memberships and cellphone contracts.
Based on records from 2013, 35.1 percent of people across the country had been reported to collection services. The average amount each person owed was over $5,000 in past-due debt.
In Louisiana specifically, the study found that 43.8 percent of residents had been sent to collections. Although this figure was 8.7 percent higher than the national average, the average amount owed was less, with a mean amount of $4,561 in Baton Rouge and $4,251 in New Orleans.
The number of Americans who are in collections has remained almost the same since 2009.
Debts related to health care take the lead for the types of debts people owe, at 37.9 percent. Student loan debt follows that at 25.2 percent, and credit card debt comes in third with 10.1 percent.
Managers for credit counseling at GreenPath believe that the factors impacting high amounts of debt delinquency include low-paying jobs, stagnant wages, and higher age ranges. Although many people have high levels of debt, the ones in the Southern states including Louisiana, Texas and Florida seem to consistently have the highest rates of debt delinquency.
At Mordock Law Group, our Louisiana debt delinquency lawyers fight back against past-due accounts. It is our aim to lower this number and help more people work out payment plans to get them out of debt for good.