Credit and Collections Statistics


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Credit And Collections Statistics 2023: Facts about Credit And Collections outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Credit And Collections, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

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Top Credit And Collections Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 43 Credit And Collections Statistics on this page 🙂

Credit And Collections “Latest” Statistics

  • In the U.S., 6% of individuals have used their credit cards to make payments that were less than the minimum necessary.[1]
  • A collection agency has contacted almost 60% of individuals who have been struggling to pay their medical bills during the last year.[1]
  • According to Experian, the proportion of 30 to 59 days overdue accounts across all debt categories has decreased by 38% over the previous ten years.[1]
  • Almost 30 million Americans have at least one debt that is being collected, and roughly one in five (19.5%).[1]
  • The necessity for debt collection services, whether in-house or third-party services, is obvious given that more than one in four Americans (28%).[1]
  • 42% increased their work hours or took on a second job, 37% took out loans from friends or relatives, and 14% of people moved to their residences.[1]
  • Individuals with super-prime credit scores account for a huge 81% proportion of credit card spending as of the fourth quarter of 2016, which is greater than their 65% share of accounts.[1]
  • In the third quarter of 2019, auto originations increased by 4.3% year over year, adding 7.5 million new accounts.[1]
  • Consumers make the second greatest percentage of spending with excellent scores (14% of total spending, compared to their 19% share of accounts).[1]
  • Between 8% and 9%, general purpose card delinquency rates have reduced more than private label card delinquencies.[1]
  • Past studies have shown that 90%–95% of all outstanding consumer debt is settled in accordance with the terms of the customer’s contracts.[1]
  • But between 2018 and 2028, the sector is predicted to fall by roughly 8%, with a loss of about 19,400 jobs.[1]
  • 6.6 billion worth of new student loans were created in April 2019, representing a 2.8% decline from last year’s last month.[1]
  • Three million vehicle loans were created in April 2019, totaling 52.8 billion new loans, a 3.6% rise from last year’s last month.[1]
  • Medical expenses in the United States, medical debts are included in 52% of debt collection activities, and 41% of working-age Americans are dealing with or paying off medical bills.[1]
  • According to most current TransUnion’s industry insights report statistics cited by CreditCards.com, the 90-day credit card default rate climbed somewhat during the third quarters of 2018 and 2019 from 1.71% to 1.81%.[1]
  • The industry’s average collection rate for the past-due debt has dropped from 30% a few decades ago to 20% now.[1]
  • Since 2009, the extremely overdue accounts with 60 to 89 DPD payments have decreased by 55%, and those with 90 to 180 DPD payments have decreased by 44%.[1]
  • The debt in America dashboard includes data from a 4% nationally representative sample of deidentified consumer-level records provided by a large credit agency.[2]
  • An estimate’s confidence interval is produced by dividing the standard error by 1.96, the t-score of a normal two-tailed distribution that eliminates 2.5% at each extreme of the distribution.[3]
  • According to the 2021 data series, victims made up 2.9% of all violent victims and 1.1% of all victims overall.[3]
  • The 15.03 to 17.91 range is the 95% confidence interval around the 16.5 estimates from 2021.[3]
  • In 2021, there were 238,043 in-person interviews conducted with eligible individuals from responding homes, yielding an 82% response rate.[3]
  • In the U.S., 15% of Americans carry credit card debt of at least $2,500 from month to month, down from 16% in 2017.[1]
  • Between 2017 and 2022, the U.S. market size for debt collection agencies increased by an average of 2.6% per year.[4]
  • 28% of Americans have at least one debt that is being collected.[4]
  • The Federal Reserve System reports that in the first quarter of 2021, the delinquency rate for credit card bills that were at least 30 days past due was a record low of 1.89%.[5]
  • The Federal Reserve Bank of New York reports that, across all age categories, 3.78% of credit card balances were edging closer to 90 days or more delinquency in the first quarter of 2021.[5]
  • Throughout all of 2020 and the first quarter of 2021, that portion never went beyond 8.93%. Comparatively, the same number was 9.2% in the first quarter of 2019 and 14.64% in the same period of 2020.[5]
  • For people who had no prior payment or spending issues, credit card debt decreased by 13.6% from February to June 2020.[5]
  • Credit card debt made up only 1% of the total debt collected.[5]
  • Americans aged 18 to 29 had 9.63% of their credit card balances drifting toward 90-day delinquency in the first quarter of 2021.[5]
  • According to the Federal Reserve Bank of New York, just 7.38% of customers had one or more debts that were being collected in the first quarter of 2021.[5]
  • The Federal Reserve Bank of New York reports that the 90-day delinquency rate was 9.98% in the first quarter of 2021 compared to 9.09% in the same period in 2020.[5]
  • 2% of those contacted by the collectors expressed dissatisfaction because they did not approach them through their attorney.[6]
  • After being asked to cease receiving messages about debt collection, 29% of people stated they still did.[6]
  • In 5% of cases, collectors said they would attempt to get exempt monies, such as child support or unemployment benefits.[6]
  • About 26% of U.S. individuals with credit files as of 2019 had a third-party collection tradeline added to the credit report.[6]
  • When the pandemic first began, compared to only 27% of white individuals, 33% of black people, and 43% of Hispanic people reported cutting down on food expenditures.[7]
  • Compared to 25% in majority-white neighborhoods, 40% of residents in communities of color had a debt that was being collected.[7]
  • Approximately 64 million Americans with credit histories, or 28% of the population, had debt in collections as of August 2021, down from 68 million in 2019.[7]
  • In August, 38% of residents in communities of color had a debt that was being collected, compared to 23% of residents of towns with a majority of white residents.[7]
  • 52% of families said they used financial assistance to pay down debt rather than for other essential expenses.[7]

Also Read

How Useful is Credit and Collections

Credit allows businesses and individuals to access funds that they do not have readily available, whether it be to make a purchase, invest in a business venture, or cover unexpected expenses. It is a tool that can help individuals and businesses reach their financial goals or overcome temporary financial setbacks. For businesses, credit can be particularly important in enabling them to expand operations, purchase equipment, or invest in research and development. Additionally, credit can help individuals finance significant purchases, such as a car or a home, without having to save up the full amount upfront.

However, the availability of credit also comes with certain risks. When individuals or businesses fail to repay their debts, it can have detrimental effects on their credit score and financial stability in the long term. For businesses, having too much debt can impact their ability to secure future funding or loans and even lead to bankruptcy. Therefore, it is essential for individuals and businesses to manage their credit responsibly and understand the terms and conditions of any credit agreements they enter into.

Collections, on the other hand, come into play when debts go unpaid. Collection agencies work on behalf of creditors to recover outstanding debts from individuals or businesses who have defaulted on their payments. This process can sometimes be seen as negative or even invasive, but it is a necessary component of the financial ecosystem to protect the interests of creditors and ensure that debts are repaid.

Collections agencies employ various methods to recover debts, such as sending letters, making phone calls, or even initiating legal action if necessary. While this may seem aggressive, it is important to remember that creditors have a right to collect on debts owed to them and that collections agencies are simply facilitating the process on their behalf. It is always in the best interest of individuals and businesses to respond to collections efforts promptly and work towards resolving any outstanding debts to avoid further financial consequences.

In conclusion, credit and collections are valuable tools that serve important functions in the financial system. Credit allows individuals and businesses to access funds when needed, while collections ensure that debts are repaid to protect the interests of creditors. By managing credit responsibly and responding to collections efforts, individuals and businesses can maintain their financial health and avoid any negative consequences that may arise from defaulting on debts.

Reference

  1. callminer – https://callminer.com/blog/state-debt-collection-2018-industry-statistics-trends-collection-practices
  2. urban – https://apps.urban.org/features/debt-interactive-map/
  3. ojp – https://bjs.ojp.gov/data-collection/ncvs
  4. capitalrecovery – https://www.capitalrecovery.net/blog/important-debt-collection-statistics-to-know-in-2022/
  5. creditcards – https://www.creditcards.com/statistics/credit-card-delinquency-statistics-1276/
  6. debt – https://www.debt.com/collection/debt-collection-statistics/
  7. urban – https://www.urban.org/urban-wire/number-americans-debt-collections-fell-during-pandemic-64-million

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