New York among states with fewest collection accounts

New York ranks among the states with the fewest collection accounts per resident, according to a new report from WalletHub that examines financial distress across the country.

The study, which analyzed data from the third quarter of 2024, placed New York 47th overall in terms of collection accounts, indicating relatively strong financial stability compared to other states. The average number of collection accounts per New Yorker in Q3 2024 was 2.58, with an average balance of $1,384.17. Both figures showed improvement from the previous quarter, with a 1.23% decline in the number of collection accounts per person and a 3.81% decrease in the average balance.

Collection accounts, which remain on credit reports for seven years, can significantly impact credit scores and signal financial hardship. WalletHub analyst Chip Lupo emphasized the importance of addressing debt in collections through repayment, debt settlement, or management plans.

“Collection accounts stay on your credit report for seven years, even once they’re fully paid off, so it’s ideal to not get into this situation in the first place,” Lupo said.

While New York fared well in the rankings, Wyoming was identified as the state with the most collection accounts, averaging over four per resident, with the highest average balance of $1,981. Despite slight improvements, Wyoming’s financial struggles remain more pronounced than in other states.