The unfortunate truth is that credit providers are forced to write-off millions of pounds of bad debt each year. Currently, over 8 million UK citizens are estimated to be over-indebted, not earning enough money to cover their monthly debt repayments. And when it comes to over-indebted consumers, credit providers stand to lose the most. But what if there was a way for credit providers to drastically reduce their debt write-offs?
How credit providers can reduce their debt write-offs
Educating people about their financial well-being
Credit providers rely on their clients’ financial well being to generate revenue. So, it would make sense for them to want to educate their clients about the importance of their financial well being.
Most of the time, people who are struggling with bad debt are not aware that there are debt solutions available to them that can help them manage their debt. Debt solutions like Individual Voluntary Arrangements (IVAs) offer incredible benefits for people who are struggling with bad debt. IVAs are also extremely beneficial to credit providers as they are guaranteed to recover a portion of the debt owed to them, instead of having to write-off the entire debt.
By educating their clients about bad debt, the various debt solutions available and by providing them with tools to help better manage their finances, credit providers can drastically reduce their debt write-offs.
Removing the stigma associated with bad debt
Credit providers are in a unique position to help remove the stigma associated with bad debt. How can they do this? Well, it comes down to providing some form of education around debt, with a goal to encourage people to seek help in taking control of their finances. People who are struggling financially often feel ashamed and try to avoid speaking about their finances. They are often embarrassed to seek help and tend to bury their heads in the sand, hoping their debt problem will go away. But we know this doesn’t help. By removing the stigma associated with bad debt, credit providers will empower their clients to seek help in managing their bad debt, which will ultimately improve their clients financial well being, whilst reducing their debt write-offs.
Partnering with a debt management firm
At Debt Movement, our mission is to rescue people who have found themselves in financial difficulty. We provide non-judgemental debt guidance and services that help people move out of debt. Our qualified team of debt specialists have helped over 35,000 people move out of debt and find financial freedom.
By partnering with a trusted and reputable debt management firm like Debt Movement, credit providers can give their clients who are struggling financially, the opportunity to find financial freedom, whilst potentially reducing their debt write-offs at the same time.
If you would like to partner with Debt Movement, please call us on 0330 380 1707 or email info@debtmovement.co.uk
At Debt Movement, we know that bad debt happens to good people which makes them feel worried and powerless. Debt Movement provides professional debt guidance and services that help people move out of debt, empowering them to take control of their finances so they can live their best lives again.
