The most up to date analysis of the American economy reveals that incomes are diminishing for those just starting out. The Collections Industry has reason to believe that this paradigm shift will be permanent.
Young adults are the most uninsured and underinsured demographic of any group in the United States. 30% of young adults are currently not insured. Even though the majority of uninsured young adults have jobs, a number of uninsured young adults work in low wage jobs and for employers who offer limited or no health care coverage.
With this many young adults already struggling to pay everyday expenses, bill collectors should step back and take a look at this situation. Uninsured young adults are twice as likely as those with private insurance to have no education beyond high school. This limits their future earnings potential.
Because of the financial problems in 2008, stricter credit standards will most likely make it harder for a number of young adults to pay for post graduate education or get loans for “good debts,” such as a home.
This as well as the new problem of cell phones, makes it harder than ever for collectors to get into contact with consumers. 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.
Many collection firms are getting ready for younger adults, attempting to use 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 a collector in person.
Mallory McGuinness is employed by a debt collection company. She also composes articles on business and finance, consumer spending and collection agencies. You are welcome to reprint this article – but get your own unique content version here.
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