Khoa Le
MGT 325
Geoffrey Giles

Debt collection through the use of a third party as is the case in this article is explained to be quite beneficial with the advantages out weighing the disadvantages by a notable margin. Rather than waiting or trying to collect the debt themselves or performing an “In House” debt collection, these third party entities are able to go out and promptly recover the debt from these anonymous parties, thus eliminating or at the very least narrowing the possibility of higher consumer prices and borrowing costs, all the while relieving stress on the government as well, since all these uncollected taxes, fines and debts put a notably significant strain on the government budget as a whole. Though unfortunately it doesn’t quite end there, as these events ricochet towards business failures and even further job loss. Businesses both large and small will reap the benefits on gathering all these previously uncollected debts, as they will see their bad debt cost kept down, thus reducing their respective risk of financial insolvency and ultimately bankruptcy. And all of this is to say nothing of these third party agencies providing employment themselves, in the sum of roughly one hundred and thirty thousand jobs, and indirectly supports the employment of thousands upon thousands more through their actions. While some would argue that they are richly compensated for their actions, the advantages of using these third party debt collectors. Of the incredibly significant fifty five point two billion dollars that they recovered in the year two thousand thirteen, they kept a mere ten point four billion dollars, leaving a very notable forty four point billion dollars of debt collected that was justly returned to each respective creditor, which equates to roughly three hundred and eighty nine dollars of saving per household, a significant amount of money any way you look at it.. The actions of these third party debt collection agencies have in actuality provided upwards of one hundred and thirty six thousand jobs. Utilizing the revenue from these various endeavors these agencies have chosen to give back as well, donating over one hundred and thirty six point one million dollars in charitable contributions during the year two thousand thirteen, which included but were not limited to over one point nine million hours of volunteer service across the nation. When all is said and done, these agencies have contributed to well over two hundred and thirty one thousand jobs with revenue stretching as far as twelve point four billion dollars. These thousands of debt collectors collect on past due accounts which range far and wide up to and including credit card issuers, various banks, retail stores of all various shapes and sizes, hospitals and probably most prominently are other health care services, but they have been known to be employed by federal state and even local governments at times. Surprisingly enough statistics show that in the year two thousand thirteen the type of debt that was most prevalent was health care followed by student loans afterwards. Though this all may sound quite impressive, in retrospect these agencies unfortunately still have a good long way to go before they can gather all the uncollected debt, if that is even reasonably feasible. That enormous fifty five point two billion dollars collected that was previously mentioned represents a woeful seven point six percent of a much larger seven hundred and fifty six billion dollar sum of uncollected debt during the two thousand thirteen calendar year. As it turns out these forms of debt can be categorized into two very different varieties, the first being known as “early out” debt or debt that is aged ninety days or earlier, while the other variety is known simply as “bad debt” wherein the individual has let the debt age over ninety days. The ratios of these two debts are staggering as well. One would have hoped that the “early out” debt would have been more prominent, but that is unfortunately not the case. As it turns out, the “bad debt” outweighs the “early out” debt a staggering seventy one to twenty nine percent. As it turns out, the United States debt collection agency’s contributions go far beyond the direct benefits of hiring and paying employees. The debt collection industry also generates a great many jobs for suppliers and other businesses that equally depend on the sales to the industry and its employees. In conclusion, it would appear that these third party debt collection agencies do much more good than harm in the overall scheme of things