In 2023, around ** percent of all medical debt in the United States belonged to individuals who owed more than ***** U.S. dollars. In 2019, the total medical debt in the United States was estimated to be at least *** billion U.S. dollars. This statistic illustrates the share of aggregate total medical debt in the United States, by amount owed.

As of June 2022, over a quarter of adults with past-due medical bills in the United States owed ************* U.S. dollars or more in medical debt to hospitals. In contrast, **** percent of adults with past-due medical debt, owed ************ U.S. dollars or less to non-hospital providers. In general, Americans who had outstanding bills with hospitals were more likely to have a higher amount of medical debt compared to those who only had past-due medical debt from non-hospital providers.

A survey from 2021 found that around 48 percent of Millennial respondents in the United States currently had medical debt, while a total of 66 percent had been in debt due to medical bills at some point. This statistic shows the percentage of U.S. adults with medical debt as of 2021, by generation.

As of March 2022, ** percent of people surveyed in the United States reported they currently have debts due to medical or dental bills that are overdue or that they are unable to pay. Overall, ** percent of Americans surveyed currently had some form of health care debt due to bills for their own medical care or someone else's care.

Total-Debt-To-Ebitda Time Series for Cencora Inc.. Cencora, Inc. sources and distributes pharmaceutical products in the United States and internationally. The company's U.S. Healthcare Solutions segment distributes pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers; provides pharmacy management, staffing, and other consulting services; supply management software to retail and institutional healthcare providers; packaging solutions to institutional and retail healthcare providers; clinical trial support, product post-approval, and commercialization support services; data analytics, outcomes research, and other services for biotechnology and pharmaceutical manufacturers; pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, and other products to the companion animal and production animal markets; and sales force services to manufacturers. This segment also distributes plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty products; and offers other services to physicians who specialize in various disease states, such as oncology, as well as to other healthcare providers, including hospitals and dialysis clinics. Its International Healthcare Solutions segment provides international pharmaceutical wholesale and related service, and global commercialization services; distributes pharmaceuticals, other healthcare products, and related services to pharmacies, doctors, health centers, and hospitals; and offers specialty transportation and logistics services for the biopharmaceutical industry. The company was formerly known as AmerisourceBergen Corporation and changed its name to Cencora, Inc. in August 2023. Cencora, Inc. was founded in 1871 and is headquartered in Conshohocken, Pennsylvania.

This statistic displays the average amount of unpaid U.S. consumer debts that have gone into collection as of 2014, by creditor. During that year, medical debts among U.S. consumers averaged 579 U.S. dollars. Collections tradelines can negatively affect a consumer's credit score.

Unpaid U.S. consumer debts gone into collection

Among unpaid U.S. consumer debts that have gone into collection, automotive creditors and credit union creditors have accumulated some of the highest debts, averaging ***** U.S. dollars and ***** U.S. dollars, respectively. However, both of these debts only account for *** percent of the collection tradelines of unpaid consumer debts in the country. Debts related to medical or health care accounted for over ** percent of collection tradelines. About ** percent of non-elderly adults in the country who had trouble paying medical bills were uninsured. However, many people covered by health insurance still have troubles paying for their medical bills. Medical debts can also arise when individuals have difficulty paying for their health insurance.

Complaints about medical debt collections are often due to debt that did not belong to the consumer and debt that was already paid, totaling ** percent and ** percent, respectively, which are the leading complaints among U.S. consumers. Total outstanding consumer credit in the United States has more than doubled from ******* billion U.S. dollars in 1997 to over three trillion U.S. dollars in 2013. Debt can lead to difficulties affording housing or other basic necessities, barriers to health care, and even bankruptcy.

The international debt collection services market is experiencing robust growth, driven by increasing cross-border transactions and a rise in non-performing loans globally. The market's expansion is fueled by several key factors. Firstly, the increasing digitization of financial services facilitates efficient debt recovery through automated systems like telephone, SMS, and email collections. Secondly, the growing adoption of advanced technologies such as AI and machine learning in debt collection processes enhances efficiency and recovery rates. Thirdly, stringent regulatory frameworks in various countries are pushing businesses towards professional debt collection agencies to ensure compliance. Finally, a rising number of SMEs and businesses engaging in international trade expands the potential client base for international debt collection services. While the market faces challenges such as fluctuating economic conditions and data privacy concerns, the overall trend remains positive. Market segmentation reveals a significant share attributed to the education and healthcare sectors, due to the growing number of unpaid bills and student loans globally. The telephone collection method continues to hold a dominant market share, although digital channels like SMS and email collections are experiencing rapid growth, reflecting the increasing preference for digital communication. Geographic analysis suggests that North America and Europe currently hold substantial market shares, driven by robust economies and established regulatory structures. However, emerging markets in Asia-Pacific and Middle East & Africa are showing significant potential for growth, driven by expanding economies and increased cross-border trade. This expansion, however, requires tailored strategies to navigate the unique regulatory and cultural contexts in these regions. The projected CAGR indicates strong sustained growth over the forecast period.

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Debt Settlement Market Size 2024-2028

The debt settlement market size is forecast to increase by USD 5.07 billion at a CAGR of 10.3% between 2023 and 2028.

The market is experiencing significant growth due to the increasing trend of consumers seeking relief from mounting credit card debts. One-time debt settlement has gained popularity as an effective solution for individuals looking to reduce their outstanding debt balances. However, the time-consuming nature of negotiations between debtors and creditors poses a challenge for market expansion. Despite this, the market's strategic landscape remains favorable for companies offering debt settlement services. Key drivers include the rising number of consumers struggling with debt, increasing awareness of debt settlement as a viable debt relief option, and the growing preference for affordable and flexible debt repayment plans.
Companies seeking to capitalize on market opportunities should focus on streamlining the negotiation process, leveraging technology to enhance customer experience, and building trust and transparency with clients. Effective operational planning and strategic partnerships with creditors can also help companies navigate the challenges of a competitive and complex market.

What will be the Size of the Debt Settlement Market during the forecast period?

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The market encompasses a range of companies offering financial wellness programs to help consumers manage and reduce their debt. These programs include medical Debt collection, consumer debt relief, and financial education resources. Online financial resources and debt management software are increasingly popular, providing consumers with affordable debt solutions and debt negotiation strategies. However, it's crucial for consumers to be aware of debt settlement scams and their settlement success rates. Debt consolidation loans and financial planning tools are also viable options for responsible debt management. Furthermore, financial literacy education and workshops are essential for consumers to understand debt reduction calculators and credit reporting errors.
Consumer financial protection agencies offer financial counseling services and financial planning advice to promote financial wellness strategies and responsible borrowing. Student loan forgiveness programs are also gaining traction in the market. Overall, the market for debt settlement and financial wellness solutions continues to evolve, with a focus on providing accessible and effective debt relief options for consumers.

How is this Debt Settlement Industry segmented?

The debt settlement industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Credit card debt
  Student loan debt
  Medical debt
  Auto loan debt
  Unsecured personal loan debt
  Others


End-user

  Individual
  Enterprise
  Government


Distribution Channel

  Online
  Offline
  Hybrid


Service Type

  Debt Settlement
  Debt Consolidation
  Debt Management Plans
  Credit Counseling


Provider Type

  For-profit Debt Settlement Companies
  Non-profit Credit Counseling Agencies
  Law Firms
  Financial Institutions


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa



  APAC

    China
    India
    Japan
    South Korea


  South America



  Rest of World (ROW)

By Type Insights

The credit card debt segment is estimated to witness significant growth during the forecast period.

The market experiences significant activity due to the escalating credit card debt among consumers. In India, for instance, the rising financial hardships faced by borrowers are evident in the increasing credit card defaults. The latest data indicates that credit card defaults in India reached 1.8% in June 2024, a notable increase from 1.7% six months prior and 1.6% in March 2023. This trend underscores the mounting financial pressures on consumers. The outstanding credit card debt in India mirrors this trend, with approximately USD3.25 billion in outstanding balances as of June 2024, a slight increase from the previous year.

Debt elimination and negotiation strategies, such as debt relief programs and debt consolidation, have become increasingly popular among consumers seeking financial relief. Credit reporting agencies play a crucial role in this process, as they maintain and report consumers' credit histories to lenders. Student loan debt, medical debt, tax debt, and payday loans are other significant contributors to the market. Consumers often turn to debt validation, credit repair, and financial coaching for guidance in managing their debts. Online platforms, mobile apps, and budgeting tools have become esse

The debt and credit collection services market, currently valued at $26.62 billion (2025), is projected to experience steady growth, albeit at a modest CAGR of 1.3% from 2025 to 2033. This relatively low growth rate reflects a complex market environment influenced by several factors. Increased regulatory scrutiny and consumer protection laws are placing constraints on aggressive collection practices, leading to a shift towards more ethical and compliant methods. Simultaneously, the rising prevalence of digital lending and the increasing sophistication of fraud detection technologies are impacting the overall volume of delinquent debt. However, persistent economic uncertainty and fluctuating interest rates continue to fuel demand for efficient debt recovery solutions, particularly for financial institutions grappling with rising non-performing loans. The market is highly fragmented, with numerous players ranging from large multinational corporations like Encore Capital Group and Intrum to smaller regional firms. Competition is intense, driving innovation in collection techniques and technologies. The adoption of advanced analytics, AI-powered debt prediction models, and automated communication tools are key trends shaping the market's future. The integration of these technologies promises to enhance efficiency, reduce operating costs, and improve recovery rates. The geographic distribution of the market is likely to reflect existing economic conditions and regulatory frameworks across different regions. Developed markets in North America and Europe are expected to continue to hold a significant market share, driven by established financial infrastructure and high levels of consumer debt. However, emerging economies in Asia and Latin America offer considerable growth potential, albeit with unique challenges related to infrastructure limitations and diverse regulatory landscapes. Specific segment breakdowns (e.g., by collection method, type of debt, or client industry) are unavailable but can be inferred to include consumer debt, commercial debt, and healthcare debt segments. Each segment demonstrates its own unique dynamics in response to economic factors and regulatory changes. This competitive landscape necessitates continuous adaptation, emphasizing technological proficiency and robust compliance programs.

Customer care centers have been influenced by various short- and long-term factors. Recent years have seen significant revenue volatility for customer care centers because of changing economic conditions. The pandemic prompted widespread business shutdowns, dampening consumer spending and investment in customer care centers. However, rising e-commerce sales during lockdowns partially offset losses. As restrictions eased and spending rebounded, providers’ revenue soared in 2021, only to drop sharply in 2022 under the pressure of high inflation, prompting businesses to slash discretionary spending and bring services in-house. Recessionary fears because of high interest rates have kept demand subdued, although a late 2024 rate cut provided modest relief. Competition has intensified as more new and smaller providers enter the market, pushing prices and profit down, although mergers and acquisitions have let larger customer care centers expand market share. Automation has reduced labor costs, benefiting profitability, though this has been constrained by high inflation that has pushed up purchase expenses. Meanwhile, offshoring trends have continued despite legislative attempts to curb them. Overall, revenue for customer care centers in the US has inched downward at a CAGR of 0.2% over the past five years, reaching $11.6 billion in 2025. This includes a 1.6% rise in revenue in that year. Tariffs imposed by the Trump administration in early 2025 are expected to significantly disrupt customer care centers in the short term by raising consumer prices and manufacturing costs, reducing disposable income and potentially triggering a recession. During a downturn, companies may bring such services in-house or seek geographic expansion to offset slowing income, thus constraining revenue for customer care centers. However, long-term prospects remain moderately positive as productivity gains and a growing number of businesses are expected to boost consumer spending and e-commerce sales, heightening demand for providers' services. The industry will adapt through greater specialization, mostly impacting technology and financial clients. Long-term, AI could become so advanced that it may replace employees’ tasks except for the most complicated questions, potentially severely threatening revenue in the coming decades. Overall, revenue for customer care centers in the US is forecast to creep upward at a CAGR of 0.4% over the next five years, reaching $11.8 billion in 2030.

In 2023, Alabama had the highest personal bankruptcy filing rate in the United States. In Alabama ****** inhabitants per 100,000 had filed for bankruptcy. In comparison, Alaska had the lowest bankruptcy filing rate, where ***** inhabitants per 100,000 filed for bankruptcy. Filing for bankruptcy Bankruptcy is a legal process that occurs when a person, business, or organization does not have enough money to pay for all of its debts. Personal bankruptcy happens for a multitude of reasons, with one of the biggest factors being medical debt. Corporate bankruptcy happens when businesses fail or because of financial distress. When a person cannot pay off their debts, a professional accountant is appointed as a trustee in bankruptcy. Their assets are frozen and then sold in order to pay off as much of the person’s debts as possible. When an organization can’t pay back its debts, a liquidator is appointed by the court. Assets are not protected, so everything can be sold off to cover the bankruptcy. In 2020, J.C. Penny Company Inc. had the largest Chapter 11 bankruptcy filings in the United States in terms of assets. U.S. bankruptcy In 2023, California had the largest number of bankruptcy filings in the United States, while Alaska had the lowest. The number of non-business bankruptcy filings has been decreasing since 2010. The same is true for the annual number of business bankruptcy cases which have been in decline since 2009.

The value of the debt per adult in Europe in 2022 varied a lot from country to country. While Swiss adults had on average over ******* U.S. dollars of debt in 2022, adults from Azerbaijan had a debt of *** dollars. Meanwhile, the average volume of debt in Europe that year was almost ****** U.S. dollars per adult. The household debt to disposable income ratio in Europe follows a similarly varied distribution. As varied as the volume of debts in Europe are, the most common forms of debt are still very similar and they tend to include: credit cards, medical debt, student loans, overdrafts, mortgages, automobile financing and personal loans.