NEWS...
Collectability Index indicates Stabilisation Ahead
A stabilisation of consumers' ability or willingness to repay their debts has been revealed by the Collectability Index released by the CSA and the DBSG.
The core themes to emerge from the data of the first two quarters of 2009 is the stabilisation of both the index of instalments and the index of settlements, following a previous decline.
This would indicate the industry is bottoming out in terms of consumers' ability to pay. However, these are still just early indicators and no firm conclusion can be identified until the figures for quarters 3 and 4 of 2009 – and perhaps even quarter 1 of 2010 – are released.
An average of 33% of consumers were able or willng to fully settle their debts in the first two quarters in 2008 which compares with an average of only 25% for the same period of 2009. this represents a fall of 24% between the two periods.
The Collectability Index is a quarterly barometer used to chart a debtor's abillity to pay, measured by the volumes and values recorded.
Original article courtesy of CSA.
