Encore Capital Group® Announces Findings of its Third Economic Freedom Study
Respondents were asked what causes them the most financial stress and the best ways to address their challenges, including attitudes toward working with debt collection companies to resolve past-due debt. The latest study also examines credit score awareness and financial literacy. The research was commissioned by Encore and conducted by Morning Consult.
A detailed report of the findings is available on Encore's website. Key highlights from the study include:
Most U.S. and U.K. adults feel somewhat or very positive about their personal financial futures, but they are less optimistic about their respective national economies. Nearly half (49%) of U.S. adults say their outlook on the future of the national economy is somewhat or very negative, compared to just over two-thirds (67%) of U.K. adults.
'Being debt-free' was the most-selected definition of economic freedom for adults in both countries, chosen by 27% of both U.S. and U.K. adults. Being debt-free was the most-selected definition for every generation in both countries except U.K. Gen Z adults, among whom 'having the independence to do/buy what I want' was the most-selected definition (25%).
While U.S. adults are more aware of their credit scores than U.K. adults, most adults in each country desire a free way to check their credit score. Over four in five U.S. adults (83%) say they know their credit score, compared to just over half (51%) of U.K. adults. Of those who say they know their credit score, roughly half or more in each country report having a 'good' or better rating.
Nearly three in 10 (29%) U.S. adults and just under one in five (19%) U.K. adults report currently having past-due debt, especially younger and low-income adults. Most adults with past-due debt in both countries say it will take a long time to pay back most or all of their balance.
Today, significantly more U.S. and U.K. adults are requesting help to repay past-due debt compared to the 2022 Encore Economic Freedom Study, and significantly more signal intentions to work with debt collection companies to resolve their debt.
'Our company supports consumers who are actively dealing with financial stress every day, which makes these findings especially important for us,' said Ashish Masih, Encore's President and CEO. 'By understanding how consumers are thinking and feeling about their finances, which priorities matter most to them, and how they plan to address past-due debt, we can better fulfill our Mission to help them on their path to economic freedom.'
The survey found that as U.S. consumers are accumulating credit card debt at record levels, and U.K. consumers continue to feel pessimistic about their national economy, adults in both countries are facing high economic concern and are focused on building emergency funds.
'We continue to be focused on meeting consumers where they are, and we're well-positioned to help them,' Masih said. 'We lead with empathy, tailor solutions to pay off past-due debt to consumers' unique circumstances, always seek to understand the consumer's needs and provide access to support in times of hardship.'
The survey's findings affirm Encore's approach to working with consumers. For example, about one-quarter (24%) of adults in both countries said that receiving a discount on debt owed would be most helpful to getting out of debt. Nearly the same number in both countries said having more time to pay off debt would be most helpful, followed by learning better financial habits.
Midland Credit Management (MCM), Encore's U.S. subsidiary, published its Consumer Bill of Rights almost 15 years ago, and it remains the only one of its kind in the industry. It clearly defines how MCM will suspend collection activities when a consumer demonstrates that they are experiencing significant financial hardship due to medical issues, natural disasters, job loss or other challenges. Similarly, Cabot Credit Management, Encore's U.K. and European subsidiary, has a Sensitive Support Team in the United Kingdom, which includes specialists trained to work with consumers facing mental or physical illness resulting in significant financial hardship. The team's goal is to ensure a consumer's debts don't become a barrier to their physical or financial recovery or well-being.
'It is heartening to see consumers prioritizing being debt-free and showing a willingness to seek help, learn new financial skills and work with companies like Encore to achieve it,' Masih said. 'The approach we take with consumers, including working with them one-on-one and tailoring solutions to meet their unique needs and circumstances, aligns well with the findings of the study.'
The Economic Freedom Study online survey was conducted from April 24-May 2, 2025, among 6,406 adults, including 3,192 U.S. adults and 3,214 U.K. adults. The U.S. and U.K. samples are weighted on age, gender, education, race/ethnicity and region to reflect the demographic makeup of their respective adult (18+) populations according to most recently available census data from each country. The margin of error for the total sample in each country is plus or minus 2 percentage points.
About Encore Capital Group, Inc.
Encore Capital Group® is an international specialty finance company that provides debt recovery solutions and other related services across a broad range of financial assets. Through our subsidiaries around the globe, Encore purchases or services portfolios of receivables from major banks, credit unions and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.
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