Nottingham, UK, 30 November 2015 - People struggling with debt prefer to create their repayment plans online to help manage their borrowing commitments.

The latest research from Experian highlights a growing trend for individuals who want to settle their debt without having to talk to anyone they owe money to. This is, in part, to avoid confrontation and take back control of their finances.

The three most popular options among UK adults when it comes to dealing with unmanageable debt are:

  • nearly one in three (32%) would prefer an online option as their first point of call for a repayment plan following a missed payment
  • going into a branch to discuss repayments face to face is what 23% would choose
  • for 20%, the preferred option is to do this over the phone

The convenience and ease of online planning is the main reason that people would opt for an online route (62 %). However, a desire to simply avoid stressful phone calls, letters and conversations are also popular reasons for going online.

Nick Grant, Business Development Consultant from Experian's Decision Analytics, commented:

'We help organisations to treat their customers fairly when it comes to the sensitive issue of debt. The majority of people struggling with debt actually want to somehow regain control of their finances. However, during what can be a very stressful and emotional time, the fear and embarrassment of speaking to someone about their debts can be barriers to taking those first steps to recovery.

'Organisations using emails, or even text messages, can engage a person and direct them to a portal where they can make a payment, set up a payment plan or complete a financial assessment at a time convenient to them. It also increases the likelihood of a payment arrangement being kept.'

When broken down by age, the findings reveal some disparities in the preferences of UK adults. Unsurprisingly, over-55s favour speaking to someone in branch with almost a third (29%) of over 55s opting for this route as a first choice, compared to 22% choosing to go online.

In contrast, those aged 35-54 much prefer addressing their outstanding arrears online (36%), and they are also the group that shun face-to-face contact the most, with over a fifth (22%) choosing a phone conversation compared to 18% going to a branch.

Nick commented:

'It's understandable that most people prefer e-mail, text, web chat and self-service options. That's not to say that traditional letter or telephone based methods don't work. Understanding the best way to communicate with each individual, as well as what they can afford, will ensure the right outcome for those in debt, as well as the organisations trying to recover those debts.

'For those in financial difficulties, often a good first step to take is to seek advice from organisations such as National Debtline, Citizens Advice and StepChange Debt Charity, who can help them understand what their options are. It is important to remember there is always support.'

Top reasons for wanting to manage debt online

Percentage

Managing my debt online would be easier and more convenient

62%

Managing it online would enable me to retake control more easily

56%

I wouldn't want to be hassled by phone calls and overdue letters

49%

Having to talk to someone would add to my stress about the debt

26%

The branch isn't open when it is convenient for me to pop in

17%

For more information about how to plan a fair and effective collections strategy, please see the Experian whitepaper here.

-ENDS-

*Survey conducted by Opinium Research 23 to 25 September 2015 amongst 2002 respondents to a nationally representative sample.

Contact:

Sarah Muir / Edward Keough

Lansons
020 7490 8828
sarahm@lansons.com /edwardk@lansons.com

About Experian

We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making.

We also help people to check their credit report and credit score, and protect against identity theft. In 2015, we were named by Forbes magazine as one of the 'World's Most Innovative Companies'.

We employ approximately 17,000 people in 38 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2015, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, 'Inside Experian'.

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