Credit card debt has doubled in the last 10 years. It now stands at $50bn, the equivalent of $3,200 per cardholder. The banks and retailers are the big winners in this debt binge but there’s another group of companies also profiting.
This year, debt collection agencies will handle more than $15bn in unpaid debts. As unemployment rises and the mining boom draws to a close, debt collectors are becoming potentially interesting stock picks.