Debt More Of A Problem For East, West Coasts But Southern States Struggling To Overcome 'Bad' Debt

 @JeffStone500j.stone@ibtimes.com
on August 03 2014 4:58 PM
Obama student loan debt
U.S. President Barack Obama signs a presidential memorandum on reducing the burden of student loan debt in the East Room of the White House in Washington, June 9, 2014. Reuters

Young Americans living on both the East and West coasts are more likely to be in debt than their peers in the middle of the country, figures released by the Urban Institute, a nonpartisan Washington-based think tank, indicate.

Researchers examined debt levels from home mortgages, credit-card bills, student loans, medical or utility bills, and car loans, the National Journal said, and found people living in the Pacific Northwest or on the East Coast between Washington and Boston are struggling the most. Those in the Pacific Northwest, for instance, carry an average of $69,831 in debt while New England residents barely have it easier with an average debt of $68,401.

 

 

The good news, depending on an individual’s location, is that people living in those areas are better poised to bring themselves out of debt, with the Northwest and New England proving an advantage when it comes to average debt-to-income ratios. Not sharing that good fortune are people living in the South, with residents in states like Louisiana the most likely in America to have the highest averages of debt in collections.

“This type of debt is largely considered the ‘bad’ kind because it is so far past due that it’s been reported to a collection agency and will sit in a person’s credit file for seven years, potentially marring credit scores and the ability to borrow money,” the Journal said.

 

 

These figures were made public only shortly after the U.S. Department of Labor Statistics announced the unemployment rate for younger workers, those 20 to 24 years old, was 11.3 percent, a full 5 points higher than the average overall unemployment in the country. 

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