Free Report: Seven Factors Influencing the Credit Card Accounts Receivable Market

Download this Free Report and Learn:

• The housing market and ensuing credit crisis and the effect on the accounts receivable industry
• The effects of the job market and income growth on consumers
• What impact the economic slowdown has had on consumer confidence and the accounts receivable industry
• The continuing upward trend of credit card charge-offs and delinquencies and subsequent rise in credit card debt collection and debt purchasing

Major concern for accounts receivable firms in credit card collections

Seven Factors Influencing the Account Receivable Credit Card Market

With credit card debt accounting for about 80 percent of the total debt purchasing and collection activity within the accounts receivable industry, any major factors influencing the credit card market are a top concern for both creditors and debt collection agencies involved in credit card collections.

The Housing Downturn and Impact on Accounts Receivables

A review of the top five largest U.S. credit card issuing institutions by outstanding managed accounts receivable (bank of America, JP Morgan Chase, Citigroup, American Express, and Capital One), reveals that overall credit card debt grew by 5.5 percent from $550.51 billion in 2006, to $580.99 billion at the end of the fourth quarter of 2007. Among the top ten largest credit card issuers, overall credit card debt grew by 7 percent, increasing from $681.69 billion at the end of 2006 to $730.28 billion by the end of 2007. Among the top twenty largest credit card issuers, overall credit card debt grew by 8.7 percent, increasing from $728 billion in 2006 to $791.64 billion at the end of 2007, according to the Nilson Report.

Download Seven Factors Influencing the Accounts Receivable Credit Card Market and gain valuable insight on how accounts receivable firms and creditors are responding to decreases in non-revolving credit.

Effects of the Economy and Weak Job Market on the Credit Card Account Receivable Market

With credit card debt levels rising as economic conditions worsen, the challenge for creditors to recover outstanding debt continues to be a pressing issue. A slowing economy has only added to the pressure felt by both consumers and creditors, with the deterioration of the job market as a chief concern.

Download Seven Factors Influencing the Accounts Receivable Credit Card Market and discover:

• How the unemployment rate's rapid rise has hit the credit card accounts receivable market
• Projections for future unemployment rates and varying impacts on accounts receivable
• Which sector gained jobs during 2008

Accounts Receivable Firms See Slowdown in Consumer Income Growth As Debt Burdens Rise

Download Seven Factors Influencing the Accounts Receivable Credit Card Market and discover:

• Why the rapid growth in credit card debt has not been sheltered from the greater economic turmoil being felt in other debt types
• Why the growth of credit card debt comes amid a difficult time for even middle income Americans as the national median household income fell
• For consumers with fewer resources at their disposal to pay down debts, the concern over the spread of credit deterioration into outstanding credit card debt will remain a focal point

How Will Account Receivable Firms Respond to Increased Volume of Sales For Credit Card Portfolios?

As the economic slowdown persists through 2008 and financial pressures continue to mount, additional emphasis will continue to be placed on finding liquidity. As a result, the final factor most likely to make the most significant impact on the accounts receivable management industry and credit card market will be the increased sales volume of credit card debt portfolios to debt buyers. As banks continue to grapple with deterioration of credit quality and search for liquidity amid the economic turbulence, many have increased the number of portfolios being sold to accounts receivable firms.

Download Seven Factors Influencing the Accounts Receivable Credit Card Market and discover:

• Why any possible shift in consumer spending will undoubtedly impact consumers’ decisions as to what gets paid when bills come due
• Why many within the accounts receivable industry predict continued declines within all categories of debt
• Why further portfolio pricing pressure is added as accounts receivable firms try to resell their portfolios amid increased sales by creditors