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We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. The data uncovers various trends and statistics about people seeking debt help.
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We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. The data provides insights about key characteristics of debt relief seekers.
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We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. This data highlights the wide range of individuals turning to debt relief.
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We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
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Credit utilization and debt relief
How are people using their credit before seeking help? Credit utilization measures how much of a credit line is being used. For example, if you have a credit line of $10,000 and your balance is $3,000, that is a credit utilization of 30%. High credit utilization often signals financial stress. We have looked at people who are seeking debt relief and their credit utilization. (Low credit utilization is 30% or less, medium is between 31% and 50%, high is between 51% and 75%, very high is between 76% to 100%, and over-utilized over 100%). In August 2024, people seeking debt relief had an average of 88% credit utilization.
Here are some interesting numbers:
| Credit utilization bucket | Percent of debt relief seekers |
|---|---|
| Over utilized | 88% |
| Very high | 5% |
| High | 3% |
| Medium | 1% |
| Low | 3% |
The statistics refer to people who had a credit card balance greater than $0.
You don't have to have high credit utilization to look for a debt relief solution. There are a number of solutions for people, whether they have maxed out their credit cards or still have a significant part available.
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Debt affects people of all ages, but some age groups are more likely to seek help than others. In August 2024, the average age of people seeking debt relief was 50. The data showed that 17% were over 65, and 15% were between 26-35. Financial hardships can affect anyone, no matter their age, and you can never be too young or too old to seek help.
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How do credit card balances vary across different age groups? In August 2024, people seeking debt relief showed the following trends in their open credit card tradelines and average credit card balances:
Ages 18-25: Average balance of $9,300 with a monthly payment of $265
Ages 26-35: Average balance of $12,920 with a monthly payment of $356
Ages 36-50: Average balance of $16,196 with a monthly payment of $453
Ages 51-65: Average balance of $16,345 with a monthly payment of $475
Ages 65+: Average balance of $16,757 with a monthly payment of $446
These figures show that credit card debt can affect anyone, regardless of age. Managing credit card debt can be challenging, whether you're just starting out or nearing retirement.
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No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.
Here's a snapshot of credit behaviors for August 2024 by age groups among debt relief seekers:
| Age group | Number of open credit cards | Average (total) Balance | Average monthly payment |
|---|---|---|---|
| 18-25 | 4 | $9,300 | $265 |
| 26-35 | 5 | $12,920 | $356 |
| 35-50 | 7 | $16,196 | $453 |
| 51-65 | 8 | $16,345 | $475 |
| Over 65 | 8 | $16,757 | $446 |
| All | 7 | $15,681 | $440 |
Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future
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Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In August 2024, the average FICO score for people seeking debt relief programs was 582.
Here's a snapshot by age group among debt relief seekers:
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 565 | 93% |
| 26-35 | 575 | 91% |
| 35-50 | 578 | 89% |
| 51-65 | 583 | 87% |
| Over 65 | 597 | 82% |
| All | 582 | 88% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
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Curious about the credit scores of those in debt relief? In August 2024, the average FICO score for people enrolling in a debt settlement program was 583, with an average enrolled debt of $24,249. For different age groups, the FICO scores varied. For instance, those aged 51-65 had an average FICO score of 588 and an enrolled debt of $25,402. The 18-25 age group had an average FICO score of 548 and an enrolled debt of $14,432. No matter your age or debt level, it's reassuring to know you're not alone. Taking the step to seek help can lead you towards a brighter financial future.
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Ever wondered how many credit card accounts people have before seeking debt relief?
In August 2024, people seeking debt relief had some interesting trends in their credit card tradelines:
The average number of open tradelines was 14.
The average number of total tradelines was 24.
The average number of credit card tradelines was 7.
The average balance of credit card tradelines was $15,681.
Having many credit card accounts can complicate financial management. Especially when balances are high. If you’re feeling overwhelmed by the number of credit cards and the debt on them, know that you’re not alone. Seeking help can simplify your finances and put you on the path to recovery.
Next 5 - Personal loans by top states
Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.
In August 2024, 44% of the debt relief seekers had a personal loan. The average personal loan was $11,142, and the average monthly payment was $361.
Here's a quick look at the top five states by average personal loan balance.
| State | % with personal loan | Avg personal loan balance | Average personal loan original amount | Avg personal loan monthly payment |
|---|---|---|---|---|
| Massachusetts | 73% | $14,911 | $22,287 | $502 |
| Conneticut | 43% | $14,902 | $22,481 | $512 |
| Arkansas | 38% | $14,573 | $22,088 | $543 |
| New Jersey | 41% | $13,608 | $19,917 | $453 |
| Minnesota | 48% | $13,249 | $19,357 | $475 |
Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.
Next 3 - home secured debt - top states
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) (using 2022 data) the average home-secured debt for those with a balance was $212,498. The percentage of families with mortgage debt was 42%.
In August 2024, 27% of the debt relief seekers had a mortgage. The average mortgage debt was $236,240, and the average monthly payment was $1,890.
Here is a quick look at the top five states by average mortgage balance.
| State | % with a mortgage balance | Average mortgage balance | Average monthly payment | |
|---|---|---|---|---|
| California | 21 | $391,801 | $2,725 | |
| Washington DC | 18 | $336,914 | $2,290 | |
| Utah | 35 | $324,405 | $2,184 | |
| Nevada | 26 | $307,368 | $2,063 | |
| Massachusetts | 29 | $303,507 | $2,366 |
The statistics are based on all debt relief seekers with a mortgage loan balance over $0.
Housing is an important part of a household's expenses. Remember to consider all your debts when looking for a way to get debt relief.
Next 4 - Collection accounts top states
Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.
In August 2024, 28% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,092.
Here is a quick look at the top five states by average collection debt balance.
| State | % with collection balance | Avg. collection balance |
|---|---|---|
| Nevada | 29 | $5,116 |
| Utah | 23 | $4,223 |
| Montana | 31 | $4,194 |
| Maine | 30 | $4,141 |
| Deleware | 28 | $3,911 |
The statistics are based on all debt relief seekers with a collection account balance over $0.
If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.
Next 2 - student loan debt by states
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In August 2024, 24% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was 50087.
Here is a quick look at the top five states by average student debt balance.
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| Washington DC | 29 | $85,809 | $208 |
| Mississipi | 29 | $58,265 | $181 |
| Georgia | 31 | $56,074 | $145 |
| New Jersey | 29 | $54,691 | $197 |
| Maryland | 26 | $54,410 | $124 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Next 1 - Credit card debt by states
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to August 2024 data, 89% of the debt relief seekers had a credit card balance. The average credit card balance was 15659.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| Conneticut | $18,817 | 9 | $28,218 | 75% |
| Arkansas | $18,773 | 7 | $24,237 | 96% |
| New Jersey | $18,372 | 9 | $26,611 | 79% |
| New Hampshire | $18,255 | 8 | $25,170 | 81% |
| Massachussettes | $17,942 | 8 | $25,538 | 77% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
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Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.
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No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Seeking debt relief can be the first step toward financial freedom. Are you struggling with debt? Explore options for debt relief to regain control of your finances. It doesn't matter how old you are or what your FICO score or credit utilization is. Take the first step towards a brighter financial future today.
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Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
Copyright© $2024. Freedom Debt Relief, LLC. www.freedomdebtrelief.com
Board of Governors of the Federal Reserve System, Survey of Household Economics and Decisionmaking [dataset] (Washington: Board of Governors, 2024), https://doi.org/10.17016/datasets.002
Copyright ©June 2023 Urban Institute. www.urban.org
New York Fed Consumer Credit Panel/Equifax