Business booming for debt collectors

Debt collectors are experiencing a boom in business in Tauranga as more people owe money, with the amounts outstanding also soaring.
Tony O'Neill, executive director of Greerton-based debt collectors New Zealand Credit Management, said when the company first opened in 1998 the average debt was $1646.
That figure stayed constant until six months ago, when it started to rise, reaching $4800 on the company's 10-year anniversary this week.
Dentist bills and chiropractic fees ranked alongside debts to hire-purchase financiers.
However, Mr O'Neill said there were also larger debts to recover.
"We're seeing a lot of trade debt but also developers going under.
"When they do, they tend to take out all the little firms involved. Our largest debt is $1.5 million."
One client had fallen victim to banks calling in loans when they were still months off being able to be paid back in full.
"One client has had a debt retired when his development hasn't even been built yet.
"It's a $10 million-$20 million development and only a portion has been done but the bank has called in the loan. He's in no position to pay it all back.
"All the tradesmen who work on these developments are then hit and become victims."
Mr O'Neill said society had a lot to answer for when it came to the "buy now, pay later" cycle.
His firm's clients had started to act smarter to prevent having to chase up debts at a later stage, he said.
Another Tauranga debt collector, Delwyn Weatherly, said businesses needed to be more vigilant when they offered credit.
She was so busy chasing debts she no longer had to advertise and needed more staff.
Chasing up unpaid vet fees, daycare, hire purchase arrears and business bills was common for Mrs Weatherley's company, Delwyn's Debts.
"We're flat out," she said.
"It's quietening down for my husband, who's an electrician, but we're so busy I might have to take on more staff."
She said there was no typical debt, with "mum and dad" debtors ranking alongside business owners, with debts ranging from $50 to $100,000.
"We're getting a lot busier because people aren't paying their bills," Mrs Weatherly said.
"I've even had to chase up my husband's customers who've not paid for work done back in April.
"People have to pull their horns in a little bit more and stay at home instead of going out."
She was working for one creditor who was owed $25,000 for gear bought by a retail outlet which had since sold all the items but not paid the supplier.
Mrs Weatherly said some debtors were putting other unnecessary purchases - such as holidays and cars - ahead of their responsibilities to creditors.