Business Operations, Economy, Finance, Technology
How TotalCollectR Helps Fight Recession And Empowers Your Business To Thrive
- Jul 05, 2022
- Chirag Dutta
Collecting more debt could be the ultimate solution to tackling recession and rejuvenating the economy. The current inflated financial market indicates one thing – a country struggling to cope with the recession. As unemployment surges and costs rise, many industries face the threat of losing profitability. Investors are in constant uncertainty as they find ways to generate ROI in such a volatile economic phase. No matter how we approach the current scenario, the baseline remains the same – More debt needs to be collected, and bad accounts need to be settled to fight the recession.
The Current Recession
An economic recession is a phase when a nation faces economic decline. In a recession, unemployment rises, and trade, agriculture, and industrial activities often slow down drastically or come to a halt. Under very severe conditions, a recession is known as an economic depression. The United States faced the worst recession in 1920, widely known as the Great Depression. Here we’ll analyze the factors relating to debt that lead to recession.
How bad debt Leads to recession:
Credit crunches occur when financial institutions like banks, private lenders, agencies, and such bodies stop providing loans to those in need. Such measures are typically a result of piling up bad debt with no chance of settlement. The Great Recession of 2008 in the United States of America was the worst economic downturn since the Great Depression.
The Saving and Loan Crisis of 1990 is perhaps the best example of a management crisis. Over 1000 financial institutions, majorly banks, stopped functioning after losing assets of over $500bn due to bad loans, improper accounting, real estate investment irregularities, and illegal activities. Financial institutions loaned large amounts of money without assessing the chances of recovery. Eventually, recovery was not possible.
LTV or Loan-to-Value ratio is a form of debt analysis to determine whether a loan can be recovered or will end up as bad debt. When the Garn-St. Germain Depository Institutions Act was enacted, it removed any restrictions on the Loan-To-Value ratio, making way for a surge in bad debts. Eventually, this piling of bad debt led to the current recession.
TotalCollectR’s Revolutionary Debt Recovery Solutions Tackles Rising Debt
Rising credit and low recovery rates lead to recession. By the end of 2021, credit card debt across the United States amounted to $787 billion, with more than 190 million credit cards issued in the country. According to the latest study, an average credit card debt amounts to $6,125. Rising debt indicates low recovery rates.
Our Virtual Debt Agent was developed to tackle this issue. TotalCollectR adds a modern touch to the traditional debt recovery practices to improve successful collection rates. The more you collect, the faster US can step out of this looming shadow of the economic slump.
What is TotalCollectR?
TotalCollectR’s Virtual Collector and Debt Manager can enhance debt recovery rates. Our platform connects your customers on channels they prefer and empowers them to resolve their past due balances at their convenience. By leveraging AI-powered technology, Total CollectR analyzes and evaluates consumers’ accounts and circumstances to plan an effective recovery strategy.
These Three Industries can thrive with TotalCollectR during the recession:
The Healthcare industry is in a crisis due to the recession that demands resolution. As COVID infections rose across the globe, extreme shortages across drug stores and pharmaceuticals broke out due to inadequate supply. Though the healthcare industry is still recovering from the pandemic, medical debt in the US currently amounts to almost $200bn.
For those leading credit control and management in the healthcare industry, here’s how our Virtual Debt Collector and Negotiator can benefit your business. TotalCollectR lets you:
-Collect Medical Bills.
-Resolve Delinquent Patient Accounts.
-Control and manage Credit flow.
-Connect with the patient.
-And a lot more.
Since the pandemic, the supply of spare parts and raw materials for the automobile industry has faced a severe crisis due to inflation. On the other hand, the rising cost of oil and gas and the lack of workers stunned the production and profitability of the industry, leading to tremendous losses.
However, TotalCollectR fits in perfectly as an all-in-one solution to these problems. Our virtual collector is on its way to resolving one of the most prominent issues in Auto Collections – The labor shortage. TotalCollectR can do more than your current staff at a fraction of the cost and deliver promising results.
House and Mortgage loans amount to approximately $15 Trillion in the US. Unless these accounts are resolved and the debt brought down, house prices will fall, and the industry will face extreme losses.
Customers are reluctant to confront human debt collectors regarding their delinquent accounts. Numerous failed attempts to collect debt occur due to this reason. On the other hand, TotalCollectR empowers customers to resolve their debt accounts by putting them in the driver’s seat of the collection process. Hence, better debt recovery rates follow.
Learn more about our software solution at the posted link below.
If you want your own Virtual Collector. Visit Total CollectR website
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