Dec 12, 2018 Philip Burgess
Now more than ever, consumers are depending on loans to get by, which means the amount of money owed by debtors has increased. A report by the Urban Institute and Encore Capital Group's Consumer Credit Research Institute showed that 77 million Americans have a debt in collection at an average of $5,178. For Americans struggling to get the money they need quickly, loans can be a fix. However, more loans may mean a higher amount of cash collectors have to get back.
Debt collectors still sometimes hold a bad reputation when they are just trying to get back the money consumers owe. They understand the struggle individuals can face when paying money back and are trained to find the best solution for companies and the consumers who owe cash.
How much debt has been created?
According to the Urban Institute report, Nevada is one of the worst states for debt , with 47 percent of consumers having a certain amount in collections. Many other states have 40 percent of its residents with a debt on file, with some smaller regions reaching as high as 61 percent.
Unfortunately, when consumers struggle to pay back that debt, collectors have to find strategies to get them to return the money.
How the economy has improved
The Huffington Post highlighted how collection companies can be a great source of investment. Banks are capable of getting their money back faster by utilizing debt collection agencies. There are approximately 4,100 debt collection agencies in the United States that have employed nearly 450,000 people. Last year, it was predicted by the source that the industry was to grow 23 percent by 2017. This has certainly put a lot of money back in the American economy. Some often overlook this kind of data and tend to just see debt collectors as the antagonist. However, there needs to be a change in perception about these individuals, as they are benefiting the economy and helping businesses receive the money they're owed.
These debt numbers are high and should be taken seriously in respect to collectors, as these professionals are one of the only solutions to get this money returned to organizations. ACA International highlighted that in 2013, collection agencies recovered about $55.2 billion in total debt plus $10.4 billion in additional fees. All of the cash is put back into the economy, after being used by the people who depend on it.