Other findings in the CFPB’s report include: Consumers in PPCs often encounter higher interest rates and fewer financial offerings due to the increased credit risk in the county. ![]() More than 2 million Appalachians live in Persistent Poverty Counties (PPCs), which are defined as counties that have had poverty rates of 20 percent or higher for the past 30 years. Thirty-three percent of the nearly 26 million Appalachians live in a rural county, compared to 14 percent of people nationwide. Today’s report examines the Appalachian region, which spans across 13 states, and is disproportionately rural. Eighteen percent of rural Appalachians had student loans that were delinquent, while rural Appalachians with a medical debt collection had a 37 percent rate of student loan delinquency.Fifteen percent of rural Appalachians had a credit card delinquency, while 37 percent of rural Appalachians dealing with a medical debt collection also had a credit card delinquency.Moreover, rural Appalachians with medical debt collections have over double the rates of delinquency for other credit products compared to those without medical debt collections in each category.įor example, while 12 percent of rural Appalachians had auto loans that were delinquent, those with medical debt collections had a 29 percent rate of auto loan delinquency. The CFPB’s report finds that nearly 24 percent of rural Appalachians have a medical debt in collections, compared to just 17 percent nationally. “Rural America plays a pivotal role in our nation’s food security and national security, so we must work to ensure that the financial marketplace can help families survive and thrive.” “The Appalachian region of our country faces distinct challenges from other parts of rural America,” said CFPB Director Rohit Chopra. In particular, medical debt collections are a much more prevalent issue among rural Appalachians, and consumers with medical debt collections often experience difficulties making ends meet on other financial obligations. ![]() Today’s report focuses on rural Appalachians, who tend to earn less than consumers in other rural areas and have higher rates of subprime credit. – The Consumer Financial Protection Bureau (CFPB) has issued the first in a series of reports focusing on the finances of consumers living in rural areas.
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