New ways to control contact by debt collection agencies
Allworth Financial Advisors explains how it is implementing a new system that gives you control over how debt collectors contact you.
Allworth Financial, Cincinnati Enquirer
Four Ohio cities were named in a ranking of cities with the most debt collection accounts in the U.S. The Aug. 13 study by personal finance website WalletHub ranked Cincinnati among the top 15.
WalletHub compared data from 100 cities across the U.S., analyzing the average number of collection accounts, average balance, and change in average collection accounts. Here’s how Cincinnati and other cities in Ohio fared.
Cincinnati is one of the worst cities in the US for debt collection
Of the 100 cities evaluated in the study, Cincinnati ranked 13th among the top 15 with the most debt collection accounts.
The Queen City ranked 10th in change in average collection account ranking and 20th in collection account status ranking. Cincinnati was one of six cities to rank in the top 20 in both categories. The other cities were Laredo, Texas (No. 1), Corpus Christi, Texas (No. 2), Irvine, California (No. 3), Plano, Texas (No. 4) and New Orleans (No. 10).
Columbus and Cleveland are among the best cities for debt collection accounts
Columbus, Cleveland and Toledo were the other three Ohio cities that appeared in the WalletHub study results.
Cleveland ranked 95th overall, having some of the best numbers for accounts in collections of all the cities studied. It ranked 88th in collections account status and 90th in change in average collections account ranking.
Columbus landed at number 77 on the list, with similar rankings for collection account status change (number 73) and average collection account rank (number 75).
Toledo ranked 63rd and ranked 83rd for change in average collection account rank and 50th for change in collection account status, according to WalletHub.
WalletHub analyst Cassandra Happe said that when a debt collection account is settled, borrowers should immediately create a plan to deal with the account. This may include adjusting the budget or looking for ways to settle with the debt collector.
Top 15 cities with the most debt collection accounts
Here’s how the 15 largest US cities fare, according to the study:
- Laredo, Texas
- Corpus Christi, Texas
- Irvine, California
- Plano, Texas
- Irving, Texas
- Omaha, Nebraska
- Henderson, Nevada
- Austin, Texas
- Dallas
- New Orleans
- Houston
- Las Vegas
- Cincinnati
- Fort Worth, Texas
- San Antonio
What happens if you don’t pay the debt collectors?
Missed payments to collection agencies may result in unwanted contact methods and a credit score drop that can remain on your credit report for up to seven years. Borrowers who open lines of credit risk having their account go into collections if they fail to pay. Over time, unpaid debts from personal loans, student loans, or credit card balances can be referred to collection agencies.
