“Accounts receivable debt collection.” This may sound like a dry term, but it may refer to the simple, time-honored act of collecting debts fairly and on time for consumer purchases or fine or fee payments, and an accounts receivable management company can be hired by a client company that cannot handle its own debt collection due to a lack of in-house experts or software. Accounts receivable debt collection can work for anything from a customer buying a shirt at a department store with their credit card all the way to a person facing criminal charges paying a fine to the court system. Debt collection does not have to be something complicated or scary; accounts receivable debt collection is simply when a person buys a service or product and pays fairly for it to complete a business transaction. Buying and financing a car or even a house can involve a debt collection agency too, and many adult Americans will deal with an accounts receivable debt collection agency many times in their life. How can a business make the most of this? And what kinds of debts to adult Americans have today? Is it a lot?
Today’s Debt
It can be stated simply that collectively, modern Americans owe massive amounts of money for the services, products, and education that they receive, but this fact should not be alarming. In fact, these kinds of numbers are typical, especially since such things as a car, house, or college education are financed over time to make the price manageable for consumers, hospital patients, college students, and more, and a third party collection agency might often be involved with a car dealership, a real estate company, or an expensive college for a consumer or student. Those who receive medical care in the United States will also deal with accounts receivable debt collection services, and many Americans have health insurance to help with this.
Medical care is common among Americans who get injured or ill, and those with a chronic condition, especially the elderly, may visit the hospital or doctor’s office more often for care, and this means having the right agencies and software in place for calculating, charging, and collecting debt in a timely and fair manner. For example, where American healthcare is concerned, there is a lot of money to work with. The debt collection agency today works with a lot of health care debt; such debt is in fact 47% of all debt that such companies work with, and for American patients, the average medical bill in collections comes out to $579. Different medical procedures and insurance policies will affect just how much of a deductible a patient may pay before their insurance company takes over the cost of a medical service, but in some cases, a health insurance company may cover a lot of the policy allows it.
American consumer debt is also massive, and can cover anything from hiring a roofing company to buying a car to a pet to children’s toys. As of September 2018, for a recent example, American consumer debt grew 3.3%, reaching a grand total of $3.95 trillion at the time. That may sound like a lot, but this is adding up many different debts, some of which many Americans will never deal with. Some Americans have debt for an expensive new car, boat, or house, while others have just a few hundred dollars of debt for a small credit card. Other debt may come from college students, who often take out loans to pay for their tuition.
Collecting debt is more than holding out one’s hand and receiving paper bills. Most debt is covered electronically, ranging from credit or debit cards being swiped at a store all the way to online payments through a bank or services such as PayPal. This means that companies will need modern and efficient hardware in their stores, and powerful software at their headquarters, so that debt can be collected all over the nation quickly, safely, and without error. A department store chain, for example, will collect credit card debt from dozens of locations, and handling all that debt may mean hiring I.T. crews or a debt collection agency to expertly handle it all.
