Forgetful Customers Risk Putting Businesses in Debt

The UK’s debt isn’t restricted to struggling individuals with some of the nation’s more affluent households guilty of late payments

Forgetful Customers Risk Putting Businesses in Debt

Nearly half of all debts owed to UK businesses are as a result of forgotten or late payments, rather than customers not having the means to pay, according to a report by Echo Managed Services.

The survey of 1,500 households revealed the nation’s spread of debt isn’t just restricted to struggling individuals, with some of the nation’s more affluent households guilty of late payments or ‘forgetfulness’ to pay their bills on time.

Interestingly, forgetting to pay was the biggest issue among those in higher income brackets. Almost half of people that have missed a payment in the £40,000+ salary bracket said that they had simply forgotten to to pay – three in five individuals also admitted to having missed a payment to an everyday service provider at some point.

More than four in 10 respondents said that making a monthly loss was the most likely reason for non-payment followed by an incorrect bill, as cited by a third of those surveyed.

Monica Mackintosh, customer services director at Echo Managed Services, said:

“The UK’s mounting debt problem is an issue which can’t be ignored – latest figures from The Money Charity put total debt in the UK at the end of March 2016 at almost £1.5 trillion. It’s therefore essential that, in order to resolve this, we begin to look more closely at the spread of, and reasons for debt, before the challenge gets even greater.

“Our report reveals that the socio-economic spread of debt is much more varied than many might think – clearly everyone has the potential to fall into arrears, regardless of income and demographic. As a result, it’s crucial that businesses trying to recover monies owed take a much more tailored and proactive approach to collections and use detailed customer profiling so the most appropriate solution can be aligned with each individual customer.”

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>