While the exact percentage of people with debt in CMCA's service area is unknown, the percentage of people with debt in collections varied from 23.9% to 35.9%, depending on the county. The average amount of debt in collections was $2,525. Reducing debt is an important step in building financial resiliency. Debt impacts the amount of funds available for other spending or saving and influences credit scores.
Through Financial Opportunity Center services, CMCA members learn financial management skills such as budgeting, reducing expenses, and lowering debt in order to increase their credit scores. By helping people improve their financial management skills and credit scores, CMCA supports families in becoming more resilient and in breaking the cycle of poverty.
Interested in supporting CMCA in this endeavor? Click here to find out how you can help.
1. Urban Institute. (February 2021). Credit Health during the COVID 19 Pandemic.