Jul 9, 2025

Commercial Debt
Consumer Debt
Debt Collection
Industry Trends

How Inflation and Tariffs Impact Debt and Collections in 2025

Inflation and tariffs are reshaping the debt and collections landscape in 2025. At Advantage Collections, we’re tracking how these economic forces affect our clients and consumers. Here’s what’s happening:

  • Higher Borrowing Costs: Inflation-driven interest rate hikes make loans pricier, pushing consumers and businesses toward delinquency.
  • Tariff-Driven Price Increases: New tariffs raise costs for goods, squeezing business margins and tightening consumer budgets, leading to slower payments.
  • Stricter Credit Policies: Businesses are tightening terms to offset tariff and inflation pressures, accelerating collection referrals.
  • Tech as a Lifeline: Automated payment plans help manage defaults as economic strain grows.

Stay proactive—whether you’re owed money or paying it back. We’ll keep you updated as the economy shifts.