Healthcare collectors beware: Credit card chargeoffs up sharply

Healthcare organizations already know that bad debt is rising to increasingly painful levels as consumers lose jobs and otherwise struggle to pay their bills.

Just to provide some perspective, bear in mind that consumers aren't just walking away from healthcare bills--they're having to ignore creditors across the board. New research suggests that credit card chargeoffs generally are continuing to grow, with many expecting the level to hit 10 percent as company layoffs continue.

The latest Credit Card Performance Index, which is provided by accounts receivable research firm Kaulkin Ginsberg, showed continued weakness in all three components of the index. This included the card charge off rate--which was 8.43 percent, the delinquency rate--which was 6.38 percent, and the recovery rate--which was 0.54 percent.

Meanwhile, another index developed by Kaulkin Ginsberg concluded that consumer default risk rose 25.3 percent, to $24.53 billion. The index measures how bankruptcy and employment levels impact collections and bankruptcy account valuation.

To learn more about these statistics:
- read this InsideARM piece

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