UK consumers racked up an estimated £5 billion of debt this Christmas, according to research by digital banking software firm Intelligent Environments. Its online survey of 2,000 people also reveals: one in ten people ran up debts of more than £750 to pay for the festive season; 17 per cent even admitted to incurring late fees at Christmas for failing to make payment on debt on time; Four in ten find current debt collection strategies, such as phone calls and threatening letters, 'very distressing’.

David Webber, managing director at Intelligent Environments, says: “It’s clear Christmas is a financially challenging time for many people and their families and current outdated debt collection tactics aren’t helping things. Allowing customers to manage their debt online would be a much less stressful and easier option and allow people to repay their debt in the way which suits them best. Digital tools can increase visibility of debt, and provide additional flexibility over repayments. That puts control over debt back in customers’ hands. Our Interact Collect solution addresses this. This is a digital debt collection and recovery solution, catering to financial services organisations and debt collection agencies, amongst other institutions. The platform enables people to log on to a personalised portal to view and settle their debt online, and on their mobile and tablet anywhere, anytime. It includes a variety of tools, such as a budget calculator, and offers a variety of payment and management options, from a direct total payment, partial payments, the ability to set up a payment plan and a “promise to pay” option which allows people to delay a payment by committing to a future date and a minimum payment amount.”

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