The surging outstanding debts have always been a cause for concern for many organizations and now even more post Coronavirus era. The US is a leading market in consumer loans and a source of information on the leading indicators. The US Federal Reserve Bank released statistics that show alarming results. The total household debt balances soared in 3Q2022 to $16.51 trillion, with an increase of $351 billion, the highest sequential rise since 2007. Mortgages and credit card debt are the most significant contributors. Credit card balances grew 15 percent year-to-year, the largest in over 20 years.
The European Market, The Far East Market, and the Middle East are also showing similar trends.
It’s critically vital to put measures into place and recognize the warning signs. An accumulation of bad debt has detrimental effects on the balance sheet. The delinquent customers can create cash flow issues by causing a slowdown in income, limiting the amount for further lending.
Putting the right measures in place is critical to protect yourself from soaring bad debt.
Download the Best Practice Guide to see how to best place yourself to overcome the situation by adopting a few steps in conquering your soaring bad debts.