Summary
- • The average debt collection agency recovers 20% to 45% of the total debt it is assigned.
- • The size of the debt collection market in the US was estimated at $11.2 billion in 2020.
- • Debt collection agencies attempt to collect an average of 200,000 accounts each month in the US.
- • Over 70 million Americans have at least one debt in collections.
- • In 2019, the average debt collection agency had 13.2 full-time employees.
- • The debt collection industry employs over 140,000 people in the United States.
- • One in every four Americans has a debt in collections on their credit report.
- • Debt collection agencies collect an estimated $66.5 billion annually in the US.
- • The debt collection industry is expected to grow at an annual rate of 6.8% from 2021 to 2026.
- • Credit card debt makes up 39.1% of all debt in collections.
- • The average debt collected per employee in the industry is around $141,500.
- • Medical debt accounts for 58% of all debt in collections.
- • The debt collection industry has an average profit margin of around 13%.
- • 80% of debt collection calls are related to medical debt.
- • Student loan debt makes up 11.5% of debt in collections.
Debt collectors sure know how to chase the money, with the industry raking in a whopping $11.2 billion in 2020 alone. With over 70 million Americans feeling the pinch of unpaid debts, its clear that debt collectors have their work cut out for them, attempting to collect from an average of 200,000 accounts each month. But hey, who knew that one in every four of us is just a phone call away from a debt collectors embrace? In a world where money talks, the debt collection industry is certainly speaking volumes – to the tune of $66.5 billion annually!
Consumer Debt Statistics
- Over 70 million Americans have at least one debt in collections.
- One in every four Americans has a debt in collections on their credit report.
- Credit card debt makes up 39.1% of all debt in collections.
- Medical debt accounts for 58% of all debt in collections.
- 80% of debt collection calls are related to medical debt.
- Student loan debt makes up 11.5% of debt in collections.
- Over 30% of all debt collection complaints are related to harassment by collectors.
- Over 25% of Americans have unpaid debts that are in collections.
- Auto loan debt makes up 9.2% of all debt in collections.
- About 3 in 10 Americans with a credit file have debts in collections.
- The average debt being collected by agencies is around $587.
- Unpaid medical bills are the most common type of debt in collections.
- 20% of consumers have been sued by a debt collector.
- In the U.S., the average consumer has $8,398 in debt in collections.
- Over half of all debt collections are related to credit cards.
- Over 70 million American consumers have at least one debt in collections.
- Over 40% of Americans have medical debt in collections.
- Debt collectors may call consumers up to 7 times a week per debt.
- Almost 20% of consumers have a debt in collections.
- Student loan debt accounts for 12% of all debts in collections.
- Auto loan debt makes up 9.7% of all debt in collections.
- Utilities and telecommunications debts account for 7.8% of debts in collections.
- Medical debts comprise 37% of all debts turned over to collectors.
- Credit card debts make up 22% of debts sent to collections.
- 27% of consumers have had debts sold to collection agencies.
- Over 40% of consumers with a credit report have debts in collections.
- The average outstanding debt collected per consumer is around $5,000.
- 15% of consumers have had debts referred to a collection agency.
- Small balance debts of less than $500 account for 65% of all debt collection accounts.
- Over 22 million Americans have debts in collections that total more than $1,000.
- 25% of all credit reports contain debt collections items.
- 30% of consumers have been pursued by debt collectors in the past year.
Interpretation
In a country where the only thing rising faster than temperatures is the amount of debt in collections, these statistics paint a rather grim yet not entirely surprising picture of American financial woes. It appears that our debts are as diverse as our interests, ranging from medical bills that seem to haunt us like a persistent cough, to credit card balances that refuse to disappear like that stubborn stain on the kitchen counter. With debt collectors ringing our phones more often than our own mothers, it's clear that this is the modern-day soundtrack of financial distress. So, as we juggle student loans, auto loans, and utility bills while dodging calls from collection agencies, perhaps it's time to face the music, pay the piper, and maybe even switch to a less catchy tune – one of financial responsibility.
Debt Collection Industry Revenue
- The size of the debt collection market in the US was estimated at $11.2 billion in 2020.
- In 2019, the average debt collection agency had 13.2 full-time employees.
- Debt collection agencies collect an estimated $66.5 billion annually in the US.
- The debt collection industry is expected to grow at an annual rate of 6.8% from 2021 to 2026.
- The debt collection industry has an average profit margin of around 13%.
- The debt collection industry spends over $5 billion annually on technology and software.
- The debt collection industry's revenue is projected to increase by 4.2% annually.
- Debt collectors recovered over $40 billion in outstanding debts in 2020.
- The debt collection industry grew by 2.1% in 2019.
- Around 25% of all dollars collected by agencies are from phone calls.
- The debt collection industry is projected to grow by 5% annually through 2025.
- The debt collection industry employs over 140,000 individuals in the US.
- Debt collection agencies recover an average of $14 billion per year.
- The Global Debt Collection Software Market is projected to reach $5.2 billion by 2026.
- The debt buying industry purchases over $100 billion in defaulted debt each year.
- The debt collection industry's revenue is projected to exceed $5 trillion by 2028.
- The debt collection industry is responsible for recovering $55 billion in revenue annually.
Interpretation
The debt collection industry seems to have found a lucrative formula in turning people's debts into their gains, with numbers that could make even Scrooge McDuck blush. The stats paint a picture of a booming market where billions are exchanged between debtors and collectors, all while the average agency staffs a team that could fill a moderately sized conference room. From massive revenues and healthy profit margins to investments in cutting-edge technology, it's clear that debt collection is big business. It almost makes you wonder, were these statistics collected with interest?
Debt Collection Market Size
- Debt collection agencies attempt to collect an average of 200,000 accounts each month in the US.
- The debt collection industry employs over 140,000 people in the United States.
- Debt collectors are estimated to contact consumers over 1 billion times each year.
- Debt collectors are responsible for resolving about 1 million accounts each month.
- The debt collection industry employs over 340,000 people globally.
- Over $180 billion in delinquent debt is turned over to collection agencies annually.
- The debt collection industry makes up 12% of the accounts receivables industry.
- Debt collection agencies employ over 500,000 individuals globally.
- Debt collectors handle an estimated 1 billion collection calls annually.
- Over 90,000 lawsuits are filed by debt collectors each year in the US.
- Debt collectors send over 1 billion letters to consumers each year.
- Debt collection accounts for approximately 30% of the volume in the accounts receivable management industry.
Interpretation
In a world that worships material possessions, the debt collection industry stands as a relentless reminder of the precarious balance between financial responsibility and overindulgence. With over 140,000 individuals in the US alone tasked with chasing down the elusive specter of unpaid debts, it seems that the modern economy can't quite shake off its lingering debts. From the staggering 1 billion collection calls made annually to the over $180 billion in delinquent debt handed over to these relentless pursuers, it's clear that the business of collecting debts is no trifling matter. In a world where money talks, it seems that sometimes it needs a loud, persistent nudge to remind us of our fiscal obligations.
Debt Collection Success Rate
- The average debt collected per employee in the industry is around $141,500.
- Nonprofit credit counseling agencies document a success rate of 20% to 35% in settling debts.
- Debt collection agencies close an average of 25% of accounts without collecting.
- Debt collection agencies recover an average of 70% of their assigned debts.
- Debt collection agencies recover an average of 15% to 25% of delinquent debts.
- The debt collection industry has an average recovery rate of 58%.
- Over 30% of debt collection calls result in a commitment to make a payment.
Interpretation
In the world of debt collection, numbers talk louder than words--and apparently, they do a pretty good job at getting debtors to listen too. With an average debt collected per employee roughly equivalent to a fancy new car, it's clear that the industry means business. Nonprofit credit counseling agencies, with a success rate that could make even a seasoned negotiator envious, are the unsung heroes of the financial world. Meanwhile, debt collection agencies juggle accounts like a magician, closing a quarter without a penny and still managing to recover the lion's share of what's owed. It seems that when the going gets tough, the tough get going--and in this case, they're going straight for your wallet. So the next time your phone rings with a debt collector on the line, remember: they may just have a 30% chance of talking you into paying up.
Effectiveness of Debt Collection Agencies
- The average debt collection agency recovers 20% to 45% of the total debt it is assigned.
- The average debt collection agency recovers 50% to 75% of the debt within the first three months of collection.
- Debt collection agencies spend an average of $1,000 per account on collection activities.
- The average collection call lasts 30 seconds to 1 minute.
- Debt collection agencies use legal action in about 15% of collection cases.
- Phone calls are the most common method used by debt collectors, representing over 80% of contacts.
- Debt collection agencies recover an average of $541 per account.
- Over 50% of debt collection calls are made after 9 a.m. and before 9 p.m.
- The debt recovery rate declines by 9% for each month an account stays delinquent.
- Debt collection agencies recover an average of 40% to 60% of the debts they pursue.
- The debt collection process typically takes 3 to 6 months to resolve.
- Debt collection agencies return $45 for every dollar spent on collecting debts.
Interpretation
In the world of debt collection, where every call counts and every dollar matters, the statistics paint a picture of a high-stakes game of financial cat-and-mouse. With an average recovery rate of 20% to 45%, debt collectors navigate the delicate balance between persistence and patience. From spending $1,000 per account to making lightning-fast calls that last mere seconds, these agents are like modern-day bounty hunters in suits. Legal action looms in the shadows, used sparingly but effectively in 15% of cases. Yet, despite the odds, the industry seems to possess a peculiar alchemy, turning each invested dollar into $45 of recovered debt, proving that sometimes the pen is mightier than the debtor.
