Debt Brings Opportunity For Collectors

There is an incredible opportunity for collectors as national debt averages rise. If we know anything for sure, it’s that consumer debt is at an all time high. In the United States alone, money is owed to the tune of close to $14 trillion. This enormous deficit continues to zoom out of control with no signs of slowing down any time soon.

Who Accumulates Debt?

The fact is, the average U.S. household maintains a debt of over $135,000, with expectations of that number growing significantly higher over the coming years. This amount can generally be attributed to mortgage and credit card debt. However, Millennials, ages 35 and under, accumulate major amounts of debt associated most often with student loans, as well as, credit card debt consisting of discretionary expenses; mostly clothing, entertainment and electronic purchases. The middle-aged population, 45 – 54 years old, accumulates debt in much the same manner as Millennials. As people continue to get older, ages 55 – 64, debt amounts often start to decline, due to mortgages and student loan amounts beginning to lessen. The senior population, ages 65 and older, experiences an even greater decline in debt as mortgages and student loans are finally paid off completely. However, credit card debt generally continues for seniors at an average rate of approximately $2500 plus.

Incredible Opportunity For Collectors

The state of our country’s financial affairs, although proven to be extremely unfortunate for the average consumer, has opened the door to incredible opportunity and means for success for the debt collection industry. No less than 30 million debtors find themselves in collections on an annual basis. Moreover, debt collectors make more than one billion consumer contacts every year in their attempts to collect on monies owed. Due to these contacts, debt collectors bring in more than $11.5 billion annually. In fact, in the last twenty years, the debt collection success rate has ranged from 11% to 19%.

Collection Agencies Abound

These figures confirm, without a doubt, that the efforts of debt collectors, are indeed both beneficial and exceedingly successful when it comes to bringing in monies owed. There are currently more than 4000 collection agencies in the United States, specializing in different areas, such as consumer or commercial collection. The number of collection agencies is expected to increase proportionately, as debt invariably increases over the next few years.

Debt Collection Start-Ups

Those considering starting up or getting ready to break into the debt collection industry can count on the fact that there will always be enough debt accumulated, both individual and commercial, for most collection agencies to be successful in bringing in their fair share of monies owed, regardless of the number of collection agencies in existence. The numbers are on your side as the opportunity for collectors increases.

“High Risk” Merchant Account

Be aware, the debt collection field, and debt collection merchant accounts are one of many industries considered to be “high risk” for obtaining a merchant account. It’s imperative that your agency has a merchant account in order for you to be able to collect money owed by means of credit and debit cards. You’ll most definitely need the help of an experienced “high risk” merchant processor, with the know how and contacts necessary for your agency to not only obtain your merchant account but more importantly to keep it.

First Card Payments

We’re First Card Payments and we have twenty years of experience helping “high risk” companies, such as yours, do just that. We’ll partner with you to obtain your “high risk” merchant account as quickly and easily as possible, at an extremely fair rate. First Card Payments is consistently 25% less than our competitors when it comes to fees, guaranteed! We walk the talk! Once you’ve got your merchant account in place, we’ll remain with you for the long haul and do all we can to support you in maintaining it. We’re always there when and if you need us. That’s our promise to you and we won’t let you down.

Find us at:    FirstCardPayments.com

Joyce Hope( Merchant Account Specialist )

Joyce Hope is a writer who specializes in merchant accounts. She has worked for First Card Payments since 2017.