According to blogger Matt Stoller, a former senate policy advisor and a fellow at the Roosevelt Institute, the Federal Reserve’s last Quarterly Release on Household Debt and Credit the number of people subject to third party collections has doubled since 2000, from a little less than 7% to a little over 14% of consumers. This consumer debt statistics increase is staggering because ten years ago, one in fourteen American consumers were pursued by debt collectors. Today it’s one in seven.
Most of those contacts will be about credit card debt. According to creditcards.com, Total U.S. revolving debt was (98 percent of which is made up of credit card debt) $793.1 billion, as of May 2011 (Source: Federal Reserve’s G.19 report on consumer credit, July 2011)
Danielle Kurtzleben writes in U.S. News & World Report (February 27, 2012) “The population of Americans in debt is not only growing; it’s changing demographically, says consumer advocate Bill Bartmann, the CEO of debt collection company CFS II. Those changes could have political implications. ‘In the old days, 10 [or] 20 years ago, the people who weren’t paying their bills, we thought of them as a substrata of society.’
That perception has changed, he says. The Consumer Finance Protection Bureau CFPB estimates that 30 million Americans have debt with collection agencies, and Bartmann estimates that 20 million of those had never been in debt before. This demographic includes those “who went to work for a living, went to school, had good jobs, bought a home and did all kinds of the right things.”
If your consumer credit card debt is unsecured, then debt collectors lies and threats are much worse than the reality they promise. My consumer debt solutions helps those of you who owe but cannot pay. Giving you relief and defeating debt collectors.
Finally, be aware of consumer debt consolidation programs. They can be beneficial but often times they are not.
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