At the height of the COVID-19 pandemic, the nation’s unemployment rate soared to 15%, the Bureau of Labor Statistics reports. The fallout on American workers was immediate as many lost their paychecks or saw their wages plummet overnight. However, broadly speaking, in much of the country, the economic damage from the pandemic did not prove to be as devastating as many first predicted.
The majority of Americans did feel a money crunch, but various surveys show mixed results. Partially because of government stimulus checks, extended unemployment benefits, and a more watchful eye on their spending, Americans appear to have weathered the economic turmoil fairly well — at least so far.
According to the nonprofit think tank Urban Institute, most Americans shored up their bank accounts and kept their spending in check. The median amount of debt in collection nationwide rose a scant $16 between February and October 2020, inching up from $1,833 to $1,849 — though this amount varies by state.
In Maryland, the median amount of debt in collections climbed from $1,569 to $1,610 between February and October 2020. The $41 change ranks as the 13th largest increase among the 30 states to report an uptick in median debt in collections agencies.
Though the typical amount of debt in collections increased in Maryland in the early months of the pandemic, other important financial indicators improved. Likely due in large part to certain provisions of the CARES Act, the mortgage delinquency rate fell from 3.7% in February 2020 to 1.8% in October 2020. The act, which was passed in March 2020, stipulated that federally-backed lenders suspend mortgage collections from borrowers in single-family homes if they were faced with financial hardship resulting from the pandemic.
All data in this story is from Urban Institute’s “Credit Health During the COVID-19 Pandemic“ report.
State Change in median debt in collections ($) Median debt in collections, Feb. 2020 ($) Median debt in collections, Oct. 2020 ($) Oklahoma +120 2,122 2,242 Alaska +108 2,073 2,181 Nebraska +92 2,003 2,095 Nevada +83 2,132 2,215 Utah +75 1,891 1,966 Missouri +73 1,948 2,021 Mississippi +71 1,774 1,845 Washington +62 1,794 1,856 Texas +61 2,102 2,163 California +54 1,842 1,896 New Hampshire +54 1,674 1,728 Vermont +46 1,702 1,748 Maryland +41 1,569 1,610 Florida +39 2,186 2,225 Alabama +36 1,917 1,953 Georgia +35 1,948 1,983 Louisiana +35 1,899 1,934 Massachusetts +35 1,549 1,584 Wyoming +31 2,478 2,509 Iowa +30 1,647 1,677 Virginia +28 1,776 1,804 Minnesota +27 1,700 1,727 Illinois +25 1,547 1,572 Tennessee +12 1,947 1,959 South Dakota +11 2,201 2,212 Rhode Island +9 1,794 1,803 Kansas +5 1,746 1,751 Oregon +2 1,540 1,542 Arizona +1 2,051 2,052 Pennsylvania +1 1,821 1,822 Maine -3 1,694 1,691 New York -5 1,755 1,750 New Jersey -7 1,379 1,372 Arkansas -8 1,671 1,663 Indiana -16 1,872 1,856 Kentucky -27 1,342 1,315 Ohio -29 1,529 1,500 New Mexico -37 1,761 1,724 Montana -38 1,837 1,799 Delaware -44 1,891 1,847 Colorado -45 1,682 1,637 Idaho -45 2,307 2,262 Michigan -51 1,553 1,502 West Virginia -62 1,643 1,581 Hawaii -73 1,999 1,926 Connecticut -79 1,625 1,546 South Carolina -100 2,197 2,097 North Carolina -102 1,670 1,568 Wisconsin -148 1,854 1,706 North Dakota -244 2,158 1,914
This article was originally published on TheCenterSquare.com on December 3, 2021.