The sound of ringing phone is a significant source of stress for many California consumers. For those who have fallen behind on their bills, the person on the other end of the line is often calling to collect on those obligations. When an individual has no means to repay those bills, having to deal with collections calls and an onslaught of late notices can lead to high levels of anxiety. Few things bring more damage to one’s health and well-being than unmanageable debt.
According to research conducted by the Urban Institute, as many as 77 million people are familiar with debt collections, and have at least one account that is currently in the collections process. These debts can range from credit card bills and past due utility payments to high levels of medical debt. On average, researchers found that a typical adult owes close to $1,350 in accounts that are in collections.
Additional research asserts that credit card spending is down on a national scale. The volume of credit card debt currently in collections is down significantly from the historical 15-year average. It appears that consumers are making efforts to pay back what they owe, even in the shadow of the recent recession.
When the sound of a ringing phone brings on a feeling of dread, the time may be right to consider options for addressing unmanageable debt. Each individual has a unique set of needs when it comes to debt relief, but many find that personal bankruptcy offers the best fit. Bankruptcy protection will not only put an immediate end to collections calls, but can also lead to the permanent elimination of certain forms of consumer debt for those in California who need it the most.
Source: NPR, "Chances Are Pretty Good That's A Bill Collector Calling : The Two-Way : NPR", Marilyn Geewax, July 29, 2014