Discovering the Reality: Millennials Emerge as the New Generation of Debt Holders
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 grow at a very healthy rate, encouraging 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 country’s most prominent living generation group until the millennials dethroned them in the recent past. Millennials are highly energetic, educated, young, and savvy regarding technology. These individuals partake in debt to get a quality education and a good career. Mortgages are the highest consumer debt classification, whereas student loans are the second highest.
The uncertainty of debt and income: According to a recently conducted survey, 68% of millennials have agreed that their lives are negatively affected by the debt. An average millennial has a credit card debt of 00, whereas their average salary is around ,500 annually.
Millennials communicate, think, and lead their lives differently due to the high debt and financial uncertainty.
The important role of technology: Millennials are the most internet-using generation, which is why companies have started interacting with them a tad differently. Almost 98% of millennials own and use a smartphone, so 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 to communicate with a millennial debtor; choose an omnichannel debt collection software environment with email, SMS, ringless voice, interactive IVR, etc.
In conclusion: The financial industry worldwide is rapidly changing, and so is the debt aspect. As the tax and regulatory burdens are being decreased gradually, the U.S. economy is expected to grow at a very healthy rate, encouraging 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), 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