Dealing With Debt

According to a recent survey, one in four Tennesseans carry delinquent debt, a figure that jumps to 41% in the state’s communities of color.

Nationally, 23% of white Americans and 29% of Black and other minorities have struggled to pay back car, credit card, student loan and medical bills that then fell into delinquency.

The rate of unpaid debt in Tennessee, like the majority of the Southeast, outpaces U.S. averages. Delinquent debts trail individuals for years, limiting their ability to secure new loans for homes and cars, rent apartments and pay for everyday living expenses.

Seven percent of Tennessee’s white residents hold medical debt, compared to 10% of minority residents; 5% of white residents have delinquent auto loans, a rate that doubles among communities of color. Student loan debt defaults overall hover at 1% for Tennessee’s white residents versus 2% for communities of color. Among young people aged 18 to 24, rates of student debt delinquencies shoot up to 14% for white residents and 21% for Black, Asian and other minorities.

The analysis, which includes interactive maps that illustrate delinquency debts in each county, defines delinquencies to include both unpaid bills in collection and past-due credit lines that have been closed and charged-off.