The New Haven Debt Map: How can we reduce the burden now?

by Annie Harper, CMHC/PRCH Financial Health Project

The New Haven Debt Map is learning from New Haven residents about their debt burden and working to collectively develop local policy reforms to reduce that burden.

People are struggling with student loans, car loans and credit card debt. Many people are behind on rent and bills, or have unpaid taxes, fines, and tickets. Close to 50% of New Haven residents have delinquent debt; rates are much higher in neighborhoods of color than in white neighborhoods. People with debts in collections may have their wages, bank accounts or tax refunds attached. More than 3,000 New Haven households are behind on their UI bills. Many owe property taxes, parking tickets, or can’t afford registration. Their cars may be towed, with retrieval fees too high for some to recover their vehicles.

People also owe mortgage arrears, medical debt, online/TV retail installment loans, tax refund advances, online payday loans, rent-to-own stores, pawnshops, bank overdrafts, child support, IRS taxes, library fines, Medicaid/DOC liens, bail bonds, loans from friends and family, credit from neighbor-hood stores, loans from loan sharks……the list goes on.

The consequences of debt go beyond a person’s finances. People with debt and arrears are more than twice as likely than others to have mental and physical health problems.

We need to know more about how debt affects New Haven families. Is debt a problem? What types of debt burden people most? What can we do in the city to reduce the burden? Can we help people save to avoid going into debt in the first place, and help them repair and build their credit? What policy reforms could help, such as municipal rules around property taxes and parking tickets, or utility bills and disconnections? Could employers help workers avoid and better manage debt?

We need to hear from experts by lived experience when it comes to debt so that we fully understand the situation, and to work together to push for policy reforms that will make a difference. If you are interested in knowing more, please contact Annie Harper, at [email protected] or (203) 295-4143.
Annie Harper is Project Director of the Financial Health Project of CMHC/PRCH (CT Mental Health Center and Yale Program for Recovery and Community Health).