Recent poling by debt advice charity Step Change suggested that 40% of people in the UK – approximately 22 million people – entered 2024 struggling to keep up with bills and other credit commitments. In this blog post, we will explore the UK's current debt landscape, emphasize the importance of effective debt management strategies, and discuss the role of technology in providing more supportive services.
The state of the UK’s debt landscape
The economic challenges faced by individuals in the UK continue to deepen, a recent study by Statistica revealed that one in eight people has borrowed money to cover essential expenses in the past 12 months. Furthermore The National Red Index highlights the average monthly deficit for people in negative budgets has increased from minus £270 in 2019/20 to minus £365 in 2023/24.
Amidst financial pressures, the number of requests for breathing space from debts surged by 25% in 2023, highlighting a growing number of individuals seeking relief from the overwhelming pressure of debt repayments.
The above statistics underscore the urgent need for effective debt collection strategies that can offer individuals the necessary support to regain financial stability.
The Role of Technology in Debt Collection
In an increasingly complex debt landscape, embracing a Financial CRM will equip companies with the capabilities to adopt a more empathic, agile and responsive approach towards those experiencing financial difficulties. Financial Cloud offers a comprehensive suite of tools designed to break down barriers between companies and consumers, streamline debt collection processes and improve the overall customer experience. With Financial Cloud companies can:
To find out more about how Financial Cloud can revolutionise debt collection practices, request a demo here.