Why does getting ahead feel so out of reach? A new analysis from the Urban Institute offers a look at the financial strain Americans are facing. 

The report, which drew from U.S. Census Bureau data, revealed that 23.5% of Americans with a credit history have debt in collections. They owe a median amount of $2,913.

As grocery bills and other essentials take a bigger toll on household budgets, some Americans are relying on credit cards to bridge the gap. However, steep interest charges can turn that short-term relief into debt that is difficult to pay off, even for borrowers who are making payments.

Susan Cannon described that cycle to Business Insider earlier this year. The 73-year-old owes nearly $40,000 across 19 credit cards, with interest rates ranging from roughly 12% to 35%. She lives in a mobile home in rural Texas. Despite paying more than the minimum balance on her credit cards, she struggles to reduce her balances while continuing to charge necessities such as groceries and gas to her credit cards.

“I can’t get the balance down because I am still having to use credit cards at the end of the month to get groceries and gas,” Cannon told the publication. “I pay my bills, but because of the interest rates, it keeps going up — I feel like I’m being gouged.”

Despite Cannon’s best attempts to build a savings account, her monthly payments are all going towards interest payments on her credit cards. 

Where Americans live can make a noticeable difference in how heavily overdue their bills are.

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