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Debt Collectors Profiting During Recession?

Not everyone suffers during recession. There are actually companies that thrive and even profit from hard times. Collection companies are one of them. Looks like debt collectors have the last laugh during financial hardships. No wonder why they are so persistent in collecting what you owe even if you are struggling to pay. It’s no exaggeration when we say that they go to the ends of the earth just to collect money from those with debt. The persistence of these people is endless.

While many Americans suffer from recession, debt collectors are business as usual. While other businesses are failing and struggling, collection agencies are thriving and growing. Recession, after all, is still good for their business. As shown by the link below, even during financial hardships, Portfolio Recovery Associates has still increased their profits by 35%. Yes, an increase by that percentage is proof enough that debt collectors are profiting during recession. Sadly for affected Americans, these additional profits are made out of the profits of by the people who are least able to afford it.

http://hamptonroads.com/2013/02/portfolio-recovery-profits-jump-26-percent-2012

As pointed out by the article above, because of financial crisis, many people resort to setting up a recurring payment plan as their way of getting out of debt. This setup helps increase the profit of collection agencies. Because whether we like it or not, debt collectors will still continue pestering you with their calls.

If you are struggling with debt and are being harassed by debt collectors, you may want to contact a debt settlement attorney.  You may owe them money, but that doesn’t mean they can harass you. You have a right that needs to be upheld and protected. An experienced debt settlement attorney can help you fight back and negotiate for a large reduction in the amount the collector claims due.

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.