Nearly One in Four Americans With Credit Are Behind on Debt

About 23.5% of Americans with a credit history had debt in collections in 2026, according to an Urban Institute review drawing on 10 million credit files alongside U.S. Census information. The median amount was $2,913. The share was up about one percentage point from 2025, when it was below 23%. Across the country, rates varied sharply: in Jim Hogg County, Texas, more than half of people with credit histories had debt in collections, while Louisiana had the highest state share.

The analysis found that 30% of people in communities of color were behind on payments, with a median collection balance of $3,009. About 16% of student-loan borrowers were behind, with a median defaulted amount of $5,078. Medical debt was in collections for 3% of Americans, with a median balance of $1,492. That figure excludes credit-card debt incurred for health care.

The timing of collections depends on the debt. Credit-card accounts are generally sent to debt collectors after a missed installment, usually within four to six months; medical debt generally takes three to six months. Federal student loans usually default after 270 days, while private loans typically default after 180 days. Involuntary collections on federal student loans, including wage garnishment and seizure of federal benefits, have been paused during a repayment overhaul, with no date specified for the pause to end.

Rising living costs and interest rates are making payments harder, Urban Institute senior fellow Breno Braga said. Separately, New York Federal Reserve figures showed U.S. debt totaled $18.8 trillion in the second quarter of 2026, and 10.6% of student-loan debt was at least 90 days delinquent.