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Reports of High December Client Payment Ratios

December is a tricky month for most people. It comes with extra expenses, many of which are unplanned and it also comes with increased social pressure to spend money giving gifts or hosting parties. For those in debt review, it can be a month of crisis as they decide whether to continue in the program and pay off their debts as expected or throw in the towel and let their financial recovery go down the toilet. 

Sadly, most years there is a very high percentage of consumers who give up on trying to save their financial future in December. Instead, they use money meant for debt review repayments to head to the shops or travel home to family and friends. They then underpay or even totally skip debt review repayments.

‘most years there is a very high percentage of consumers who give up on trying to save their financial future in December’

As a result, those who crash out of the process in December can only look forward to many years or even decades of being harassed by credit providers, collections attorneys and the courts. 

December 2020

2020 was a tough year financially for everyone, not just those already in debt review. Those in debt review could turn to their Debt Counsellor for advice and help talking to the credit providers they owed. Most of the banks were incredibly understanding. They offered (profitable) payment holidays to consumers as long as the Debt Counsellor sent through a few documents. Many consumers were able (with advice from Debt Counsellors) to make use of credit life insurance to get through the worst of it. But before you know it the dreaded month of December had rolled around and the industry held its breath as we waited to see what was going to happen.

Would already strained consumers in debt review finally bend and break as they lost control of themselves in December?

Would the urge to just have some fun and forget about dealing with debt override people’s better judgment?

Surprisingly, the answer was No.

Sticking to the Process

Most consumers decided to keep up their debt repayments. A number of positive factors came into play that those within the industry had perhaps overlooked as being something that would help keep people in the process:

No big in person parties with lots of gift giving

No big in person parties with expensive catering

Less going out to just stroll the mall and spending on impulse as a result 

Better budgeting by consumers who have learned to count the costs during the year

The use of the Debicheck payment process for most large Debt Counselling practices

These factors made a world of a difference and it seems that payment percentages by those in debt review stayed high. Some Debt Counsellors have said it was the best December they have seen in their practice, with a much higher percentage of clients sticking to the process than normal.

2021

Some Debt Counsellors are saying that there have as yet not been many applications for help as the new year gets off to a start. Others, who spent more on advertising in December in a build up to the start of the year are reporting that they are seeing a higher than normal number of applications by people who are serious about getting a grip o their finances this year.

If you have been wondering about how to handle your debt then, why not speak to an NCR registered Debt Counsellor about the various options available to you?