Arrears volumes and trends in debt collections

The 2024 Global Collections Survey from RO-AR.com, sponsored by EXUS, revealed signs of stabilization in reported arrears rates – a welcome change after the sharp surge witnessed in 2023. That spike, driven by inflation, rising energy costs and job instability, had left many consumers in financial distress.

Yet, despite signs of plateauing, overall arrears remain stubbornly high. Many households continue to struggle with repayments, and the sector is still contending with elevated demand for debt management plans and support services.

Q: Are arrears increasing?

While we’re no longer seeing the steep climb of 2023, the cost-of-living crisis hasn’t gone away. Consumers remain under pressure, and rising interest rates are compounding their financial vulnerability. Persistent missed payments and increased reliance on financial support are becoming the norm, not the exception.

How consumer behaviour is shifting under pressure

The report also highlighted changing consumer patterns in how debt and spending are managed in this uncertain landscape. Customers are becoming more risk-averse, adjusting behaviours to avoid new debt and better manage existing obligations:

• More cautious credit card usage: Consumers are increasingly using credit cards only for essential purchases.
• Increase in transactor behaviour: More individuals are paying off balances in full, spending strictly within income limits.
• Rising demand for hardship programs: There’s growing uptake of hardship assistance and interest in financial literacy support.
• Stronger preference for flexible repayment terms: Customers are seeking repayment structures that reflect their evolving financial situations.

This shift underscores a deeper, systemic strain on household finances - and the urgent need for adaptable, supportive debt management solutions.

Looking ahead to 2025: High arrears are here to stay

Heading into 2025, arrears volumes are expected to remain elevated. The macroeconomic picture remains challenging, with several key risk areas continuing to influence repayment behaviour:

• Rising living costs: Expenses related to rent, mortgages, and utilities continue to outpace income growth, placing household budgets under strain.
• Forbearance fatigue: Even with assistance programs in place, many consumers still face difficulty managing day-to-day financial obligations alongside their debts.
• Debt defaults and tighter credit: As more consumers reach their financial limits, and lenders tighten criteria, the risk of default increases.
• Cybersecurity threats: The shift to digital-first collections introduces growing risks around data breaches and operational resilience.
• Geopolitical instability: Global conflicts and economic uncertainty are fuelling inflationary pressures and affecting consumer confidence.

How EXUS helps turn the tide

At EXUS, we’re working with financial institutions and utilities companies worldwide to respond proactively to these trends. Our debt collections platform incorporates three decades of global insights from 52 countries, helping clients:

• Deploy flexible strategies tailored to changing borrower needs
• Streamline operations through automation and digital engagement
• Build stronger, longer-term relationships with customers

Whether you're facing rising arrears, operational complexity, or regulatory pressure, our platform is designed to simplify your collections process - supporting every stage and channel, across every product type.

Download the full 2025 Global Collections and Recoveries report