Collection accounts can significantly harm a person’s credit score and stay on their credit report for up to seven years.
A rise in collection accounts within a city is often a sign that more residents are struggling to keep up with their bills.
“If you have an account in collections, it’s important to immediately come up with a plan to handle it,” Chip Lupo, analyst for WalletHub, a personal finance website, said in a statement.
For example, Lupo said, you might create an extremely strict budget and set aside money every month for paying off the debt. Or, you could settle with the collection agency, work with them to create a debt management plan, or wait out the statute of limitations if you’re close to it and haven’t made any payments.
He also suggested you should also know what debt collectors are and aren’t legally allowed to do, so you can report any bad behavior.
To find out where Americans are facing the greatest financial challenges, WalletHub has released a report “Cities With the Most Collection Accounts.”
|
Biggest Collection Account Problem |
Smallest Collection Account Problem |
|
1. Garland, Texas |
91. Miami, Fla. |
|
2. Fort Worth, Texas |
92. Newark, N.J. |
|
3. Arlington, Texas |
93. Chicago, Ill. |
|
4. Lubbock, Texas |
94. Detroit, Mich. |
|
5. Henderson, Nev. |
95. San Francisco, Calif. |
|
6. Austin, Texas |
96. Washington, D.C. |
|
7. Reno, Nev. |
97. Boston, Mass. |
|
8. Plano, Texas |
98. San Jose, Calif. |
|
9. Houston, Texas |
99. Honolulu, Hawaii |
|
10. Dallas, Texas |
100. Winston-Salem, N.C. |
Garland, Texas, is the city with the most collection accounts, and residents with collection accounts have an average of 3.6 each as of the second quarter of 2025. This average increased by about 3.4 percent from the first to the second quarter this year, the 13th-highest percentage in the country, according to the report.
Despite having a lot of collection accounts, Garland residents owe an average of $1,248 on each account in collections, the 16th-lowest in the country. The average balance increased by about 4 percent between the first and second quarter, too, the 15th-highest percentage.
Check WalletHub’s report for information on other cities in your state.
