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. To find out where Americans are facing the greatest financial challenges, the personal finance company WalletHub has released its latest report Cities With the Most Collection Accounts.
| Biggest Collection Account Problem | Smallest Collection Account Problem |
| 1. Garland, TX | 91. Miami, FL |
| 2. Fort Worth, TX | 92. Newark, NJ |
| 3. Arlington, TX | 93. Chicago, IL |
| 4. Lubbock, TX | 94. Detroit, MI |
| 5. Henderson, NV | 95. San Francisco, CA |
| 6. Austin, TX | 96. Washington, DC |
| 7. Reno, NV | 97. Boston, MA |
| 8. Plano, TX | 98. San Jose, CA |
| 9. Houston, TX | 99. Honolulu, HI |
| 10. Dallas, TX | 100. Winston-Salem, NC |
For the full report and to see where your city ranks, please visit:
https://wallethub.com/edu/
“If you have an account in collections, it’s important to immediately come up with a plan to handle it. For example, you might create an extremely strict budget and set aside money every month for paying off the debt. Alternatively, you might 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 have not made any payments. You should also familiarize yourself with what debt collectors are and aren’t legally allowed to do, so you can report any bad behavior.”
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“Garland, TX, is the city with the most collection accounts, and residents with collection accounts have an average of 3.6 each as of Q2 2025. This average increased by around 3.4% from Q1 to Q2 2025, the 13th-highest percentage in the country. 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 around 4% between Q1 and Q2 2025, too, the 15th-highest percentage.”
- Chip Lupo, WalletHub Analyst
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