Future Changing For Debt Collectors
The most current study of the American economy attests that incomes are decreasing for those just starting out. The Collections Industry has reason to believe that this paradigm shift will be permanent.
Young adults are the most uninsured demographic of any group in the United States. 30% of young adults are not insured today. Despite the fact that the majority of uninsured young adults are employed, a number of uninsured young adults work in low wage jobs and for employers who offer limited or no health care coverage.
With this many young adults already struggling to pay day to day expenses, debt collection professionals should step back and take a look at this situation. Uninsured young adults are two times as likely as those with private insurance to have no education past the point of high school. That limits their future earnings potential.
Due to the financial crisis in 2008, stricter credit standards will probably make it harder for many young adults to pay for post graduate education or get loans for real assets, such as a home.
This as well as the new problem of cell phones, makes it harder than ever for collectors to get into contact with consumers. John Monderine, owner of Rapid Recovery Solutions believes that over 40 percent of his consumers do not have landlines.
Analysis in the field expect more sophisticated profiling systems will be made to assist collection agencies in collecting those accounts where there is an active cell phone and information from bureaus to see if the consumer has a new address or phone number.
Many collection firms are getting ready for younger adults, attempting to use the ways that they like to communicate and do business. One collection agency recently added an online system that allows consumers to make payments online, rather than deal with a collector in person.
Mallory McGuinness-Hickey works for a debt collection company. She also composes pieces on consumer spending, business, finance, and debt collection. This and other unique content ‘collection letters’ articles are available with free reprint rights.
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