Debt. It's a part of everyday life and impacts us all. From the Government to the consumer, levels are coming down from an all-time high, but are still at worryingly elevated levels, fuelled by the availability of cheap credit and low interest rates. For many organisations in the utilities, financial services, telco and retail sectors, bad debt continues to impact financial performance.
The situation is expected to get worse. Interests Rates have been at record lows for many years; in the UK market, for example, the interest rates have now been at 0.5% for over five years. When interest rates do rise, the commonly held view is that this will tip many other people into debt as mortgages take up a bigger percentage of their monthly spend. This is expected to impact those organisations who offer credit, including utility providers, retailers, loan and credit card providers in particular.