The financial industry around the world is rapidly changing, so is the debt aspect. As the tax and regulatory burdens are being decreased gradually, the U.S economy is expected to be growing at a very healthy rate, which in turn encourages the consumers to spend with ease. The debt volume’s growth is also being affected by the change in the spectrum of consumers, which has gone to the millennials from the previous generations.
The new Consumer breed: The baby boomers have been standing as the biggest living generation group in the country until they were dethroned by the millennials in the recent past. Millenials are highly energetic, educated, young, and quite savvy when it comes to technology. These individuals partake in debt in order to get a quality education and a good career. Mortgages are the highest consumer debt classification, whereas the student loan comes as the second highest.
The uncertainty of debt and income: According to a recently conducted survey, a whopping 68% of the millennials have agreed on the fact that their lives are being affected negatively by the debt. An average millennial is tied up with a credit card debt of $5500, whereas their average salary is around $35,500 per annum. Millennials communicate, think and lead their lives differently, due to the high amounts of debt and uncertainty in their finances.
The important role of technology: Millennials are the most internet using generation, which is why the companies have started interacting with them a tad differently. As almost 98% of the millennials own and use a smartphone, the organizations must plan and execute their strategies to interact with them through the technology they love.
The Ultimate step: In order to engage and interact with the millennials successfully, companies must focus on learning from their consumer behavior and eventually build their business plans according to them. Not only the millennials are the biggest living generation, but they are also a maturing one.
Best Tips on Debt Collection from Millennials that You Can Follow
Provide “Tech-first” On-demand Solutions
Upgrading your Debt Collection Software would be the best chance for you to communicate with a millennial debtor; choose an omnichannel debt collection software environment with email, SMS, ringless voice, interactive IVR, etc.
Conclusion: The financial industry around the world is rapidly changing, so is the debt aspect. As the tax and regulatory burdens are being decreased gradually, the U.S economy is expected to be growing at a very healthy rate, which in turn encourages consumers to spend with ease. You can see this right now as millennials have come of age and taken over from their parent's generation (Gen X), who were known for saving more than they spent on credit cards or other loans. Millennials are much better suited to carry larger amounts of debt because they generally don't care about it as much--they're living paycheck-to-paycheck and only spending what money they have available each month instead of saving up cash like previous generations would do when buying