Collection departments can’t afford to focus on just one data point or a single month’s performance. To understand what’s really coming down the pike, you have to step back and see the entire landscape — and right now, that landscape has some dark clouds forming.
The Federal Reserve Bank of New York’s Q2 Household Debt and Credit Report just landed, and buried inside is a warning sign. Credit card delinquencies — accounts 90+ days past due — are inching dangerously close to the levels we saw during the 2008–2009 financial crisis.
But that’s not the only red flag waving:
- HELOC growth: Home Equity Lines of Credit jumped by $18 billion. The trouble? Many borrowers aren’t using the funds for home improvements that could boost value. Instead, they’re funding luxury vacations and other non-essential splurges. Rising interest rates could turn these comfortable payments into financial strain almost overnight.
- Student loans returning to credit reports: After a five-year reporting pause, federal student loan balances are once again showing up in credit bureau data. That absence previously allowed some borrowers to qualify for extra credit they may not have been able to afford otherwise.
- Bankruptcy filings climbing: According to U.S. Courts Judiciary News, personal and business bankruptcies rose 11.5% in the twelve months ending June 30, 2025.
The Predator in the Tall Grass
Here’s how I see it: this situation is like a lion stalking its prey in the tall grass. At first, you barely notice it — a percentage point here, a slight uptick there. But before long, the movement is undeniable, and the lion is close enough to pounce. By then, it’s too late to run.
We still have time. But that window is closing.
Creditors have been struggling to find collector talent, so this is the moment to rethink the strategy.
Pull out every communication tool you have: text messages, emails, phone calls, secure online chats — whatever channels make it easiest for consumers to respond before their debt spirals.
Because once the predator leaps, recovery will be slower, harder, and more expensive.
Don’t wait for the roar.
Pay attention to the grass — and move before it’s too late.
Author: Bev Evancic
Bev.Evancic@ResourceManagement.com
Bev Evancic is a Senior Vice President at Resource Management Services, Inc. Prior to employment at RMS, Bev worked as the Collection and Recovery Manager at AT&T Universal Card, Citi, and Federated Department Stores. Bev started in the collection industry as a collector at an upscale clothing store in Cincinnati, Ohio. As a returned check and private label credit card collector, Bev gained a basic understanding of the collection industry that has not changed with the introduction of regulations. Her collection philosophy begins with the idea that businesses and customers benefit from preserving the customer relationship. First, collectors need to attempt to contact customers when it is convenient for the customer to discuss his/her financial condition and willingness/ability to pay. Second, you never collect money by intimidating or threatening customers. Third, businesses must make sure the debt is valid.
She has managed all phases of collection and recovery operations, including automated dialer units, bankruptcy, and legal units, skip tracing units, internal collections, outside collection agency networks, and Consumer Credit Counseling. As a Consultant for Resource Management Services, Inc., Bev has spearheaded collection and recovery best practices reviews for many top credit grantors. Her articles on dialer operations, agency management and bankruptcy best practices have been widely publicized.
She is well known and regarded as a specialty expert in the areas of: Repossession, Bankruptcy, Estate, Litigation, as well as Pre- and Post- Charge-off. Prior to joining Resource Management Services, Inc. in 1995, Bev managed the Recovery Department for AT&T Universal Card Services where she developed the bankruptcy, probate, internal and litigation processes.
She is the author of “Recovery Management: Collecting the Uncollectible Account.
