Here is an article recently printed HERE but it clearly shows how the industry is moving to self cure.
A growing number of people seem to be turning to the internet, with research from Experian highlighting the fact that people increasingly want to settle their debt without having to talk to anyone they owe money to.
According to the findings, traditional methods of debt collection can increase customer stress, which is why so many prefer to create repayment plans online to help manage their borrowing commitments. This allows them to avoid confrontation and take back control of their finances, without needing to worry about unwelcome phone calls keeping them up at night.
The figures show that the three most popular options when it comes to dealing with unmanageable debt are an online solution (32%), with a far lower proportion wanting to go into a branch to discuss repayments face-to-face (23%). The least popular option is to deal with things over the phone (20%), which is perhaps understandable considering that most people want to avoid stressful phone calls and conversations.
The top reasons for seeking an online solution include the convenience and ease of online planning (cited by 62% of respondents), the ability to take control of debt more easily (56%), and the fact that branches aren’t open at convenient times (17%). However, 49% said it was because they don’t want to be hassled by phone calls and overdue letters, while 26% said that having to talk to someone would only add to the stress about the debt, so it’s no wonder that online solutions have become so popular.
“The majority of people struggling with debt actually want to regain control of their finances,” said Nick Grant of Experian, “but during what can be a very stressful and emotional time, the fear and embarrassment of speaking to someone about their debts can be barriers to taking those first steps to recovery.”
It’s for this reason that online options are so popular, but he also pointed out that online solutions increase the likelihood of a payment arrangement being kept. This is a win-win situation for everyone involved – not only will companies be less likely to bombard you with debt-related communications, but if you stick to your repayment plan, you’ll be building up your credit score at the same time.
Lighthouse Consulting has created SoftWave collections contact us for more info.
SoftWave Collections which is a electronic communication strategy that sends soft waves of pre-written set of messages to consumers over time.
These messages often take the form of emails and texts, although other media can also be used.
Soft Wave campaigns are distinct in two ways: (1) the timing of the messages follows a pre-determined course; (2) the messages are sent in an automated fashion applicable to a specific behavior or status of the consumer.