A Consumer Financial Protection Bureau (CFPB) report maintains that rural Appalachians tend to earn less than consumers in other rural areas and have higher rates of subprime credit.
The CFPB indicated the report is in conjunction with a series focusing nationwide on consumer finances in rural communities with higher concentrations of Persistent Poverty Counties (PPC), defined by officials as counties possessing poverty rates of 20 percent or higher for the past 30 years.
“The Appalachian region of our country faces distinct challenges from other parts of rural America,” CFPB Director Rohit Chopra said. “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 report found that medical debt collections among rural Appalachians serve as a more prevalent issue. Consumers with medical debt collections often experience difficulties meeting other financial obligations.
The report also showed that 15 percent of rural Appalachians had a credit card delinquency, and 37 percent of rural Appalachians with a medical debt collection also had a credit card delinquency.
Additionally, the report determined that 18 percent of rural Appalachians had delinquent student loans, and rural Appalachians with medical debt collection had a 37 percent rate of student loan delinquency.