Summary
- • 1 in 4 adults in the United States have debts in collections.
- • The average amount in debt collections is $5,178 per person.
- • Over 70 million Americans have at least one debt in collections.
- • Debt collection agencies recover around $40 billion annually.
- • Debt collectors make over one billion contacts with consumers each year.
- • The debt collection industry employs over 125,000 people in the United States.
- • About 25% of complaints received by the Consumer Financial Protection Bureau are related to debt collection.
- • The average age of debt in collections is 5.64 years.
- • Debt collection agencies collect around 20% of the total debt they are tasked with recovering.
- • Over 80% of consumers contacted by debt collectors report some form of aggressive communication tactics.
- • The percentage of individual debt in collections decreases as income increases.
- • Medical debt is the most common type of debt in collections.
- • Over 50% of debts in collections are related to medical expenses.
- • 30% of consumers report being contacted by debt collectors at least once a week.
- • The average debt collected through wage garnishments is $1,309.
Owe, Owe, Owe, Its Off to Collections We Go! Did you know that 1 in 4 adults in the United States have debts in collections, with an average debt of $5,178 per person? Over 70 million Americans are facing the music of debt collectors, who bring in a whopping $40 billion annually through their over one billion annual contacts. With the debt collection industry employing over 125,000 people, its clear that the business of chasing money is booming. But watch out for those aggressive tactics – over 80% of consumers have a debt collection horror story to tell. Stay tuned as we delve into the colorful world of debt collection, where the numbers dont lie (but the debt collectors might!).
Average amount in debt collections
- The average amount in debt collections is $5,178 per person.
- The average age of debt in collections is 5.64 years.
- Debt collection agencies collect around 20% of the total debt they are tasked with recovering.
- The average debt collected through wage garnishments is $1,309.
- Debt collectors often charge contingency fees ranging from 25% to 50% of the collected amount.
- Debt collectors often pay pennies on the dollar to purchase debt portfolios for collection.
- Debt collection agencies recover an average of $4,537 per account in the first three months of collection.
- The average age of a debt that debt collectors try to collect is 9.4 years.
- Debt collection agencies recover an average of 22% of the total debt they are tasked with collecting.
- Debt collectors often purchase debt portfolios for as little as 1% of face value.
- Debt collectors attempt to collect an estimated $14.8 billion in child support debt in the United States each year.
- Debt collectors attempt to collect an estimated $67 billion in unpaid medical debt in the United States annually.
- The average amount of debt in collections per U.S. consumer is $1,143.
- Debt collection agencies recover an average of 15% of the total amount of debt they are assigned to collect.
- Debt collectors typically recover about 20% of the debt assigned to them within the first 30 days.
- Debt collection agencies often purchase bundled debt portfolios for as little as 1 to 2 cents per dollar.
Interpretation
In the world of debt collection, the numbers paint a picture that is both alarming and intriguing. With an average debt of $5,178 per person looming over our heads for 5.64 years, it's no wonder debt collectors are working relentlessly to recover their share, managing to wrangle back approximately 20% of the total debt. From wage garnishments yielding an average of $1,309 to the risky yet lucrative purchase of debt portfolios for mere pennies on the dollar, the debt collection game is a high-stakes hustle filled with contingency fees and strategic maneuvers. It seems that in this financial battleground, every cent counts, and the quest to retrieve billions in child support and medical debt is a relentless pursuit that showcases the resilience and cunning of debt collectors. It's a world where numbers rule, and every percentage gained or lost can make or break a bottom line.
Consumer complaints about debt collection
- About 25% of complaints received by the Consumer Financial Protection Bureau are related to debt collection.
- Over 80% of consumers contacted by debt collectors report some form of aggressive communication tactics.
- 30% of consumers report being contacted by debt collectors at least once a week.
- Over 45% of consumers have debts in collections removed from their credit report after disputing them.
- Over 50% of consumer complaints about debt collection involve continued attempts to collect a debt that is not owed.
- The Fair Debt Collection Practices Act received over 84,500 complaints in 2018.
- Debt collection complaints represented 15% of all complaints received by the Federal Trade Commission.
- Over 25% of consumers report being contacted by debt collectors between 9 pm and 8 am.
- 29% of consumers say they have been threatened by a debt collector in the past year.
- Over 50% of consumers have had a debt in collections reported inaccurately on their credit reports.
- Debt collection complaints accounted for 20% of all complaints received by the Consumer Financial Protection Bureau.
- In 2019, there were over 80,000 complaints related to debt collection reported to the Consumer Financial Protection Bureau.
- Debt collection accounts for 9% of all complaints received by the Federal Trade Commission.
- Over 60% of complaints to the Consumer Financial Protection Bureau are about attempts to collect a debt not owed.
- Debt collectors are required by law to send a written debt validation notice within five days of initial contact.
- The top reason for disputing a debt in collections is inaccurate information, cited by roughly 42% of consumers.
- Debt collection complaints make up about 25% of all consumer complaints received by the Federal Trade Commission.
- Approximately 30% of debt collection complaints involve attempts to collect debts that consumers do not owe.
- Over 50% of debt collection complaints relate to attempts to collect on debts that have already been paid or settled.
- Close to 40% of consumers report experiencing threats or harassment from debt collectors.
- Debt collection complaints filed with the Consumer Financial Protection Bureau increased by 10% in 2021.
- Debt collectors contact consumers an average of seven times per week.
- Over 25% of consumers have had the wrong person contacted about their debt.
- Over 65% of consumer complaints about debt collection involve incorrect information reported to credit bureaus.
Interpretation
The world of debt collection seems to be a chaotic dance of misinformation and aggressive tactics, with consumers often feeling like they're trapped in a real-life game of Whack-a-Mole. From late-night phone calls to threats of legal action, it appears that some debt collectors have taken inspiration from the Wild West when it comes to their communication strategies. With over 60% of complaints revolving around erroneous attempts to collect debts that consumers don't actually owe, it's no wonder that many find themselves caught in a frustrating cycle of back-and-forth. Perhaps it's time for the debt collection industry to undergo a makeover, shifting its focus from intimidation to accuracy and transparency. After all, a little kindness and honesty can go a long way in ensuring both parties emerge victorious from the financial battlefield.
Debt prevalence among adults in the United States
- 1 in 4 adults in the United States have debts in collections.
- The percentage of individual debt in collections decreases as income increases.
- Medical debt is the most common type of debt in collections.
- Over 50% of debts in collections are related to medical expenses.
- The average consumer has around $8,863 in debt.
- Approximately 1 in 10 Americans have debts that have been sent to collections.
- Over 70% of debt collections involve medical debt.
- Approximately 30 million Americans have debts in collections that are seven years or older.
- Debt collectors can take legal action to pursue repayment up to six years after the debt was incurred.
- Over 25% of Americans have debts in collections, with an average amount owed of $5,404.
- Over 35% of consumers have experienced debt collection activity in the past year.
- Consumers aged 25-34 are most likely to have debts in collections.
- Credit card debt accounts for the largest portion of debt collected by agencies, at 39%.
- About 20% of consumers have debts in collections related to telecommunications services.
- Student loan debt makes up about 11% of debt collected by agencies.
- Unpaid credit card debt accounts for 70% of debt collected by agencies.
- Personal loans account for 12% of debts in collections.
Interpretation
In a world where debt is as common as a morning coffee, these statistics paint a stark picture of financial woes haunting the lives of many Americans. From medical bills that pile up like laundry to the relentless pursuit of credit card debt, it's clear that the burden of owing money knows no bounds. It seems debt collectors have a knack for lingering like a bad cold, showing no mercy regardless of age or income level. With an average $8,863 hanging over consumers like a dark cloud, it's no wonder that debt collection has become an inevitable part of modern life. So, the next time you swipe that credit card or book that doctor's appointment, just remember: somewhere out there, a debt collector might be sharpening their claws.
Number of Americans with at least one debt
- Over 70 million Americans have at least one debt in collections.
- Debt collectors make over one billion contacts with consumers each year.
- The debt collection industry employs over 125,000 people in the United States.
- The debt collection industry employs over 140,000 people in the United States.
- Roughly 42 million Americans have unpaid medical bills that have been reported to collections agencies.
- Debt collection agencies account for over 140,000 jobs in the United States.
Interpretation
It seems that in America, debt collection has truly become a booming industry, with more people being personally acquainted with debt collectors than with their own distant relatives. With over 70 million Americans having a debt in collections and collectors making a billion annual contacts, it's like navigating a minefield of financial obligations. The sheer volume of debt-related employment is startling - one can't help but wonder if there are more debt collectors than therapists at this point. And with 42 million Americans facing unpaid medical bills reported to ruthless collection agencies, it's clear that for many, financial pain isn't just a headache, it's an ongoing migraine.
Revenue generated by debt collection agencies
- Debt collection agencies recover around $40 billion annually.
- The debt collection industry is estimated to be worth over $13 billion.
- Debt collection agencies recover an average of $39.3 billion in consumer debt annually.
- Debt collection agencies are expected to grow at an annual rate of 2.1% over the next five years.
- Debt collection agencies recover an average of $2.44 for every $1 spent on collection efforts.
- The debt collection industry is projected to increase by 11% between 2020 and 2024.
- Debt collection agencies recover an average of $5.14 for every $1 spent on litigation.
- Debt collection agencies recover an average of $39.3 billion in consumer debt annually.
- The debt collection industry has an average annual growth rate of 2.2%.
- Debt collection agencies use automated dialing and text messaging systems for over 60% of their debt collection efforts.
- The debt collection industry is projected to grow by 2.6% annually over the next five years.
- Debt collection agencies collect an average of $39 billion in debt each year.
- Debt collection agencies recover an average of $3.45 for every dollar spent on collection efforts.
- The debt collection industry is forecasted to grow at an annual rate of 1.1% over the next five years.
- Debt collectors recover an average of $36 billion in consumer debt annually.
- Debt collectors recover an average of $12.60 for every dollar spent on debt collection efforts.
- Debt collection agencies recover an average of $3.10 for every dollar spent on enforcing judgments.
Interpretation
In the world of debt collection, numbers don't lie, and they certainly don't come cheap. With debt collection agencies raking in billions annually, it's clear that turning unpaid bills into recovered funds is big business. Like a financial ninja, these agencies are projected to grow steadily, armed with their arsenal of automated technology and legal prowess. With an impressive return on investment, averaging multiple dollars recouped for every one spent on collection efforts, it seems that for debt collectors, the hunt for that elusive dollar is a strategic game of numbers where the odds are certainly in their favor. So, if you find yourself on the receiving end of a debt collection call, remember, it's not personal, it's just business - a billion-dollar business, to be exact.
