Takata, a Japanese equipment manufacturer struggling since a scandal erupted nearly a decade ago over airbag ruptures, announced that it would file for bankruptcy. The defects were tied to 11 deaths and more than 180 injuries in the United States alone.
Not all money problems that lead to bankruptcies are a result of financial irresponsibility. In far too many cases, unexpected setbacks like divorce or job loss create crisis. However, one catastrophe seems to create the most serious financial shortfalls.
Debt collection is a significant moneymaker. A third of the industry’s $11.4 billion-dollar revenue comes from companies that buy delinquent debt from original lenders and take on the collection duties.
As online shopping grows in prominence, retail stores are trying to find ways to preserve both their brick and their mortar. They face and increasingly difficult, if not impossible task of replicating the convenience of purchasing pretty much anything without a customer having to leave their house.
Most debt is created by consumers buying goods and services up front. One swipe of a credit card is all it takes to make a purchase.