It may be a sign of the improving economy and growing optimism nationwide as consumers are increasingly paying back loans to financial institutions, leading to a decrease in credit defaults over the past six months. Additionally, with new technologies, agencies can facilitate the debt collections process to obtain owed money from consumers. The recent Standard & Poors Consumer Credit
Default Indices found that for the month of June, a majority of loan types experienced a decrease, with the composite rate falling to 1.52 percent from 1.62 percent in May. These numbers are near or below the rates that were in place before the recession. The amount of bank card defaults were at 4.35 percent in May, and have decreased to 3.97 percent in the past month. Although auto loan defaults increased slightly to 1.04 percent in June, it's May number of 1.03 percent was the lowest in eight years. There are a few methods that debt collection
agencies can adopt once the default has happened, no matter the rate. Inside ARM reports that one-time-use personalized URLs can increase online payments, creating more convenience for consumers and businesses that have defaulted. Virtual negotiators are also beneficial, as they provide privacy and simplicity for consumers to pay debts, writes the website.