Credit and Collections Statistics

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

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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 🙂

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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 has become an indispensable tool in today’s consumer-driven economy. It provides individuals with the flexibility to make purchases and payments over time, thereby enabling them to meet immediate financial needs without depleting their savings. By utilizing credit, individuals can access goods and services that they may not have been able to afford otherwise, such as a home, car, or education. Moreover, credit can also be utilized as a means of building a positive credit history, which can open doors to future financial opportunities.

On the other hand, collections are essential for maintaining the integrity of financial agreements. In cases where individuals or businesses fail to meet their financial obligations, collections ensure that debts are recovered in a timely manner. This is crucial for preserving the financial stability of creditors and preventing the erosion of trust in financial transactions. Collections also serve as a deterrent for individuals who may be tempted to default on their debts, as they face the risk of damaging their credit score and losing access to future credit opportunities.

While credit and collections are undoubtedly useful, it is essential to recognize their limitations and potential drawbacks. For instance, excessive reliance on credit can lead to financial overextensions, resulting in debt accumulation and potential financial distress. Similarly, aggressive collections practices can create undue stress and hardship for individuals who may be facing difficult financial circumstances. Moreover, the effectiveness of collections efforts can be influenced by various factors, such as economic conditions, legal regulations, and the willingness of debtors to cooperate.

In light of these considerations, it is crucial for individuals and businesses to approach credit and collections with caution and responsibility. Consumers should carefully consider their financial capabilities before taking on additional debt and strive to maintain a positive credit history. Likewise, creditors and collections agencies should adhere to ethical and legal standards when pursuing debt recovery, respecting the rights and dignity of debtors while fulfilling their obligations.

In conclusion, credit and collections are invaluable tools for managing financial transactions and ensuring the integrity of financial agreements. When utilized responsibly and ethically, credit can provide individuals with the means to meet their financial needs and achieve their goals, while collections can help recover debts in cases of non-payment. By recognizing the importance of credit and collections and using them judiciously, individuals and businesses can navigate the complexities of modern financial systems with confidence and stability.

Reference

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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