Cost Of Living Crisis and Debt Recovery

There is a current hosepipe ban in the Cherwell Area but on a larger scale we are going to see some very choppy financial waters…

First the Covid Pandemic (which is of course still leaving its mark financially) and now a cost of living crisis like never seen before. 

How will this impact our work as debt collectors?

Both consumers and Businesses are going to be overstretched financially and ultimately having to make ‘Pecking Order’ decisions. In this brutal climate you need to make sure as a creditor you are top of that pecking order. This may mean taking legal action at the earliest opportunity to ensure the debtor knows you are to be paid as soon as possible. It won’t of course be as plain sailing as this and there will be some consumers and businesses alike who can’t pay any of their creditors. Hold tight- it’s a choppy sail ahead.

See below some of the main reasons why this is happening….

The conflict between Russia and Ukraine is an important driver behind the cost of living crisis, but there are many other variables : Covid: the effects of the pandemic cannot be underestimated. As well as the health impact, it has brought social and economic upheaval, from the multi-billion pound cost of furlough to devastation for the transport, travel, hospitality, entertainment and leisure industries. Weather: an unusually cold winter in 2020/21, especially in parts of Asia, saw demand for energy rocket on international wholesale markets, which had an impact on supply and therefore on prices. The cost of gas was going through the roof long before Russia invaded Ukraine Economic resurgence: as Covid receded, so the manufacturing and distribution sectors kicked back into life, triggering a further surge in demand for energy and more upwards pressure on prices Regulati...

https://www.forbes.com/uk/advisor/energy/cost-of-living-crisis/