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Debt Collection News Roundup – March, 2019

Here at Access Credit Management we like to make sure we bring our readers interesting and relevant news about debt collection and finance so once a month we’ll be publishing a News Roundup.  This should keep you up to speed with all the important goings on within the sector and provide you with a valuable a resource that keeps you fully informed of all the latest news.  It would be interesting to know what you, the readers, think of the stories that feature here.  Please join in by adding your comments on our Facebook page, tweeting on Twitter or email us if you come across anything that you think we should include.

First comes the worrying news that parents across the UK are slipping into thousands of pounds worth of debt as a result of high childcare costs.  With families reporting that they are running up credit card debt in order to meet the costs of vital childcare, some are asking themselves, it worth working!   A family with two parents working full time and two small children are facing charges of around £2,000 per month on the vital childcare that is necessary to work.  This type of sum can be prohibitive for those in lower paid work and for single parents who bear the costs alone.  Childcare is a difficult issue – we need to pay the people who look after our children in a manner that reflects how essential it is that childcare is of the highest possible standard.

The latest debt survey has revealed that two thirds of Brits have debts of some sort, with credit card debt being most common (35%), followed by mortgages (24%) and student loans (11%, though, worryingly, 28% for millennials).  Nearly a third confess that they feel their debts are out of control and they do not know how they will clear them, whilst a quarter disclosed that they regularly lose sleep worrying about the amount they owe.  Two thirds have no savings to act as a financial safety net during difficult times.

B2B debt is on the increase as so many business-to-business and business-to-customer transactions delay paying invoices for indefinite amounts of time.  Whatever the reason for this, cash flow issues, a difficult economic climate or even plain old procrastination, it can lead to the creditor businesses experiencing negative effects and, in some cases, liquidation.  Creditor companies are dealing with these problems in a variety of different ways, including engaging the services of a commercial debt collection agency which can lead to further expense if the funds are not recovered, leaving business owners even more out of pocket.  This is why the canniest business owners choose to use a debt collection service that operates on a contingency, no-win no-fee basis.

We’ll have more news next week of the latest trends in the debt collection process, so make sure you check back soon to ensure you’re fully informed.