Consumers are more financially stressed than ever, but are also more open to working with debt collectors to resolve their debts, according to Encore Capital Group’s 2025 Economic Freedom Study, released this week. The survey, which polled over 6,000 adults in the U.S. and U.K., provides a revealing look into the evolving attitudes consumers have toward debt, credit, and what it means to be financially free.
📊 By the numbers:
- 29% of U.S. adults and 19% of U.K. adults report having past-due debt.
- 56% of U.S. and 57% of U.K. adults with past-due debt owe on credit cards, considered to be the most common and stressful type of debt.
- 24% of adults in both countries say that receiving a discount on what they owe would be the most helpful solution for getting out of debt.
- 83% of U.S. adults say they know their credit score vs. just 51% in the U.K.
- A growing number of adults plan to work with debt collection companies to resolve debts
💬 What they’re saying: “Consumers are prioritizing being debt-free and showing a willingness to seek help, learn new financial skills and work with companies like Encore to achieve it,” said Ashish Masih, President and CEO of Encore. “We lead with empathy, tailor solutions to pay off past-due debt to consumers’ unique circumstances, and always seek to understand their needs.”
📉 The stress is real: Inflation and unexpected expenses are the top two barriers to paying off debt in both countries. In the U.S., 27% of adults carry more than $25,000 in past-due debt. In both markets, the majority of debt holders say it will take them a long time to repay what they owe.
📈 A shift in consumer behavior: More consumers say they’ve had a positive interaction with a debt collection company than in years past, and trust in the industry is rising, especially among Gen Z and Millennials. Preferred communication methods vary by country, with U.S. consumers leaning toward phone calls, while U.K. consumers prefer email.
📚 Between the lines: Being “debt-free” was the top definition of economic freedom for 27% of U.S. and U.K. adults. With consumers’ top goals focused on eliminating debt and building emergency funds, collection strategies that align with these aspirations are likely to be more effective.
