Why Debt Collections Calls are on the Rise

Calls from debt collectors have been spiking in 2025.

According to an analysis from NumberBarn, collection calls in the U.S. are up over 150% compared to last year. The amount of complaints about collection calls filed with the Federal Trade Commission (FTC) in Q1 2025 more than doubled year-over-year.

So what's going on? Are debt collection companies simply getting more aggressive, or is this a sign of larger problem? 

Credit card debt continues to rise

Consumer credit card debt in the U.S. hit an all time high of $1.21 trillion at the end of 2024. After a brief dip in early 2025, we're right back at that $1.21 trillion peak.

Personal debt dipped pretty sharply during the pandemic, and it's easy to see why. Federal student loan payments were paused, lots of creditors were offering short-term forbearance and deferral programs, and even if you wanted to spend money frivolously, there was hardly anyway to do that thanks to widespread shutdowns.

The pandemic, of course, created massive shortages as production was paused on pretty much every kind of consumer good available. That shortfall helped to kick off a wave of inflation that we're still feeling profoundly today.

So prices in the last few years have risen significantly, while incomes have not. As a result, more and more consumers are using credit to balance out the shortages in their budget. And often that growing discrepancy between what things cost and what we can afford isn't immediately obvious. After all, it's not like your spending habits changed.

When we go to the grocery store and the bill goes from $100 to $110 to $120, you may not have bought anything different, it's just that the cost of everything you buy went up. It doesn't feel like a bad habit that you need to correct, because it's not. And so little by little, you lean on credit more and more. 

Your debt eventually becomes unsustainable

Research from the Federal Reserve Bank of St. Louis shows a clear correlation between debt levels and delinquency. As debt levels in the U.S. have risen since 2021, so too has the percentage of consumers who are at least 30 days delinquent. And that connection holds true for every tax bracket: while lower income communities may have a higher percentage, delinquencies increase across the board as debt levels increase.

But it doesn't just stop at 30 days delinquent. The increase in consumers who are 90 days delinquent follows the exact same trajectory, suggesting that this is a not a short-term problem. Consumers are falling behind and staying behind, because there's no way to get caught up. Their income doesn't increase, while the cost of their daily essentials keeps going up.

People with bad intentions are taking advantage of the situation

It makes sense that as debt levels rise, delinquencies rise. And it also makes sense that as delinquencies rise, debt collection activity rises. The disproportional rise in collection calls that are abusive, threatening, harassing, or outright scams, however, is less easy to rationalize.

The simplest explanation is that what you could call "sharks smelling blood in the water." Delinquent debts are on the rise and those debts represent money, which is motivating individuals and organizations to act more aggressively and less ethically than they have in the past.

There's probably more to it than that. The massive downsizing at the Consumer Financial Protection Bureau (CFPB) and other consumer advocacy groups may be a contributing factor. Ultimately, it doesn't really matter why. The important thing is what you do about it.

How to protect yourself

Your first question should always be, "How can I get rid of this debt?" Clearing away the debt opens up space in your budget and keeps the debt collectors away.

If it's feasible, you should try to repay the debts in full. You can use a debt consolidation loan or a debt management plan (DMP) to bring multiple debts into one simple payment. With the DMP, there's massive interest rate reductions and no credit requirement, so you can still get the maximum benefit even if you've missed some payments.

If you've fallen behind, though, it's likely that you can no longer afford to repay your debts in full. In that case, you may want to connect with your creditors to see if you can work out a settlement. If that feels overwhelming, you can use a debt resolution plan (DRP) from MMI. The DRP is a nonprofit spin on debt settlement, with lower fees and less risk. 

While you're working through your debt repayment options, always protect yourself when dealing with debt collectors.

• Don't provide personal identifying information to unconfirmed, unsolicited callers. 
• Always request proof and verification for any debt that someone is attempting to collect from you.
• Don't hesitate to report abusive callers to the FTC.

Unmanageable debt often hangs over us like a dark cloud. If you're not sure what to do about your debt, MMI financial experts are here to help. Over 80% of MMI clients report immediate stress relief after connecting with MMI.