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.
First, young adults are the highest uninsured demographic of any group in the United States. 30% of young adults go without health coverage currently 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 much young adults already struggling to pay everyday expenses, debt collectors 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 beyond high school. That limits their future earnings potential.
Due to the financial crisis in 2008, stricter credit standards will most likely make it harder for many young adults to pay for post graduate education or get loans for positive assets, such as a home.
This in addition to the new issue of cell phones, makes it harder than ever for collectors to contact debtors. John Monderine, owner of Rapid Recovery Solutions believes that over 40 percent of his consumers do not have landlines.
Researchers in the field expect more methodical profiling systems will be made to help collection agencies in collecting those accounts where there is an active cell phone and information from bureaus to see if the debtor has a new address or phone number.
Some collection firms are preparing for younger adults, embracing 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 an agent.
Mallory McGuinness-Hickey is employed bya debt collection company. She also writes stories on the credit industry, business, finance, and debt collection.