Special Report
How Consumer Debt in Washington Changed During the Pandemic
Published:
Last Updated:
At the height of 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 Washington, the median amount of debt in collections climbed from $1,794 to $1,856 between February and October 2020. The $62 change ranks as the eighth largest increase among the 30 states to report an uptick in median debt in collections agencies.
Though the typical amount of debt in collections increased in Washington in the early months of the pandemic, other important financial indicators improved. Likely due in large part to certain provisions of the CARES Act, the mortgage delinquency rate fell from 1.6% in February 2020 to 0.8% in October 2020. The act, which was passed in March 2020, stipulated that federally-backed lenders suspend mortgage collections from borrowers in single-family homes if they were faced with financial hardship resulting from the pandemic.
All data in this story is from Urban Institute’s “Credit Health During the COVID-19 Pandemic” report.
State | Change in median debt in collections ($) | 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 |
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.