Debt Collector Salary
Debt Collectors in the United States pull down an average of $13.45 per hour. This group's pay is mainly influenced by geographic location, followed by career length and the particular employer. More than half of Debt Collectors (64 percent) survey participants are women. Health benefits are not claimed by all — just under one in three lack any form of coverage — but the larger part have medical insurance, and the greater part have dental, too. Among folks in this role, job satisfaction levels approximately match the national average. Respondents to the PayScale salary survey provided the data for this report.
Job Description for Debt Collector
A debt collector notifies the holders of accounts that are "past due" of their obligations to pay, and they help find and facilitate the best means for that person to repay the amount owed. Most of the time, individuals in this position work for a financial company dedicated to collecting on past due accounts.Read More...
The biggest skills a debt collector need are the ability to communicate well and keep information organized. In many cases, a debt collector spends most of their time on the phone, and they likely work in a call center environment; it is common for a debt collector to make 100 to 200 phone calls per day. Additionally, a debt collector may generate mail correspondence as well.
Debt collectors are normally given their company's parameters or methods for acceptable debt repayment. Debt collectors work with individuals with past due accounts within those parameters to reduce or eliminate the debt. These professionals often need to note all contact with the debtor and follow up with them on any agreed-upon payment methods or obligations.
Debt collectors work a variety of shifts throughout the day; most U.S. states permit debt collection calls until the early evening, so a collector on the East coast may work until 10 p.m. or later to make calls further west.
The work can occasionally be stressful for debt collectors, as debtors they contact may lash out verbally over the debt in question. As such, a critical skill for a debt collector is thick skin and an ability to maintain a calm demeanor in these stressful situations. Some employers may also prefer previous experience as a debt collector or in a similar position.
Debt Collector Tasks
- Record information about financial status of customers and status of collection efforts.
- Monitor overdue accounts, receive payments and post amounts paid to customer accounts.
- Locate and notify customers of delinquent accounts by mail or telephone.
- Arrange for debt repayment or establish repayment schedules, based on customers' financial situations.
Common Career Paths for Debt Collector
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Popular Employer Salaries for Debt Collector
Popular Skills for Debt Collector
Debt Collectors report using a pretty varied skill set on the job. Most notably, skills in Negotiation, Collections, bill collections, and Customer Service are correlated to pay that is above average. Skills that are correlated to lower pay, on the other hand, include Bilingual and Typing. Most people who know Customer Service also know Collections.
Pay by Experience Level for Debt Collector
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For Debt Collectors, more experience in the field does not usually mean bigger paychecks. Workers in their first five years can expect to earn $29K, but people who have been around for five to 10 years earn a noticeably bigger sum of $35K. The average pay reported by folks with 10 to 20 years of experience is around $36K. Debt Collectors who have acquired more than two decades of experience generally do see greater compensation; their average income is approximately $38K.
Pay Difference by Location
With a pay rate for Debt Collectors that is 27 percent greater than the national average, Houston offers a comfortable salary for those in this profession. Debt Collectors can also look forward to large paychecks in cities like Cleveland (+13 percent), Atlanta (+6 percent), San Diego (+5 percent), and Minneapolis (+4 percent). Location significantly influences compensation, with Tucson Debt Collectors earning much less — 27 percent less — than the national average. Not at the bottom but still paying below the median are employers in Buffalo and Cincinnati (20 percent lower and 14 percent lower, respectively).