Debt Collectors Getting Hard To Find
October 30, 2007
There is no debate that more Americans are missing payments on loans and other obligations than ever before. In some areas, the problem is reaching critical mass. A slow economy means unpaid bills, it is that simple. With people who are losing jobs, finding mortgage payments out of reach, and struggling with medical expenses, completely paying their bills each month has become impossible. Enter the debt collector.
Michael Klozotsky of Kaulkin-Ginsberg, debt collection analysts, states that people are borrowing “at rates we’ve never seen before. It outpaces gains in wages. People just cannot keep up with that.”
This presents a challenge for the debt collectors who are working to get some of that owed money. The problem is fairly simple: They are have a ton of business because of the late or no pay actions of consumers, but the people they are contacting for payments are less willing to make good on the past payments because they simply have no funds to do so. As you might imagine, the turnover rate for debt collectors is also staggering.
According to the Federal Reserve, Americans owe nearly $2.5 trillion of consumer debt, that staggering number is almost twice as much as it was just 10 years ago