Interest rates, employment, and public finances.
These are some of the often-mentioned factors when talking about what affects the economy. One often overlooked factor is debt collection and its impact on the credit market.
And debt collection, specifically, is essential for the economy, stresses Carsten Tanggaard, Professor of Economics at Aarhus University.
"Debt collection plays a significant role in macroeconomics. Making sure that debtors pay their debts plays a key role in granting credit when it is scaled up to a macro level".
This means that the link between debt collection and credit granting is important for an efficient credit market and will ultimately have a major impact on the economy in the Nordics.
"In general, it is crucial for a healthy and well-functioning credit market that
borrowed money is paid back as agreed.”
At the same time, Carsten Tanggaard states that credit histories and data on consumers are important tools for creating a healthy credit market.
"In general, it is crucial for a healthy and well-functioning credit market that borrowed money is paid back as agreed. Therefore, creditors must have insight into people's credit histories. Debt collection is therefore important for credit provision and credit provision is important for the economy. The two are inseparably linked".
Debt collection plays a significant role in macroeconomics. Making sure that debtors pay their debts plays a key role in granting credit when it is scaled up to a macro level Carsten Tanggaard says.
Debt collection agencies can help during inflation
In times of inflation and increasing prices on, for example food and energy products, consumers may find it more difficult to pay off their debts.
"If inflation makes it difficult to recover debt, credit markets freeze up."
Carsten Tanggaard states that in such situations, debt collection agencies have a clear role to play in helping to recover the debt.
"The problem with high inflation and credit is that it causes the economy to tighten, and borrowers can have problems servicing their debts. The task of getting the money back can then be supported by debt collection agencies."
"If inflation makes it difficult to recover debt, credit markets freeze up. Credit then becomes harder to obtain and interest rates rise, which then affects activity in society," concludes Carsten Tanggaard.
Financial expertise in digestible packages
Focus is built by listening to the needs of financial professionals who want to dive deeper into current topics. The magazine provides a great variety of expert viewpoints, news from the debt collection industry and economic analyses. In addition, Focus will offer expert insights from the fields of research, science and industry, for example, significant legal reforms affecting the operating environment of companies and news related to credit management.
”We decided to bring the views of experts from different fields together in clear and digestible packages, but also to present important financial themes on a regular basis," says Nera.
Focus articles open the world of credit management from the perspective of customer experience, service development, and data utilization.
