How Much Debt Americans Carry — and Can Collectors Still Sue You?

Full transcript

I. The national picture

Start with the national picture. U.S. credit card balances stood at one point two six trillion dollars in the second quarter of twenty twenty-six, and total household debt at eighteen point eight trillion. Twelve point nine percent of card balances were ninety or more days delinquent.

II. The clock, by state

Now the clock. The statute of limitations on credit card debt runs three years in North Carolina, four in Texas and California, five in Florida, and six in Georgia and Arizona. Six states are in the free study.

III. The balances behind it

The balances behind it vary too. Florida has the highest average card balance of the six, ten thousand nine hundred twenty dollars, with twelve point four percent ninety days late. Georgia's delinquency is highest, at thirteen point one percent. North Carolina has the lowest balance, seven thousand eight hundred forty.

IV. When the clock starts

Two details decide where that clock stands. In all six study states, it begins on the date of first delinquency, and it does not reset when the debt is sold to a collection agency. Across the six, the window to sue runs three to six years.

V. The minimum-payment math

Meanwhile, the balance itself compounds. A ten thousand dollar card balance at twenty-five percent, paying only the minimum, takes twenty-seven years to clear and costs seventeen thousand eight hundred dollars in interest.

VI. What a judgment can take

State law also limits what a judgment can take. Texas has no wage garnishment for consumer debts, and Florida exempts one hundred percent of wages for heads of household. The full study is free at Dreamy Leads Research. What state are you in, and how many years old is the oldest debt a collector has contacted you about? Tell us in the comments.