Paying More, Paying Obligations: A Modern Guide to Debt Repayment in Russia
The financial obligation has been fulfilled.
Disposable incomes of the Russian population saw a significant 8.4% boost in Q1 2025, as per National Association of Professional Collection Agencies (NAPCA) data, after accounting for mandatory payments and inflation adjustments. The association reports that the average debt repayment also increased, reaching 5,354 rubles in Q1 - a sizable jump from the 3,570 rubles in Q1 2022. Why is this happening? Let's dive into the factors at play.
The Quirky Quarters of Debt Repayment
According to Alexander Vasiliev, CEO of ID Collect - a debt collection service, the seasonality of debt repayment is a significant contributor to the total. The typical peak in average debt repayment size occurs during November-December, when individuals aim to begin the new year with a clean slate. A fair chunk of activity also occurs mid-Q2, during summer holidays, as Russians try to avoid run-ins with international travel complications, Vasiliev clarifies.
Dealing with Debts: No Piece of Cake, But Better Than Before
Based on average monthly salaries in Russia of approximately 92,000 rubles, NAPCA views 5,354 rubles (approximately 5-6% of the salary) as tolerable. A reasonable share for meeting debt responsibilities is considered to be 20% of income. Yet, the current figure pales in comparison, attributable to the "adaptable and eco-friendly" strategies implemented by professional collection agencies (PCA), which strive to ease clients' debt servicing burdens by extending special terms in 81% of cases.
Make That Call, Strike a Deal: Clients Prefer In-House Resolution
There's a growing appetite among clients for settling debts within the confines of the law, as over 50% of clients currently pay off their debt informally. This preference for an out-of-court settlement is mainly linked to the increasing financial literacy among Russians, assert leaders from "First Client Bureau."
The Dark Side of Debt Collection
Despite the rosy picture painted by NAPCA, debt collectors are not unanimously lauded. According to analysis conducted by "Expert," an astounding 9,194 valid complaints against debt collectors were lodged with the Federal Bailiff Service between January and April 2025 - nearly equal to the total from the previous year. The overdue debt of individuals stood at 1.45 trillion rubles as of May 2025.
The shadow cast over the market is not due to professional collectors but rather those operating outside the law. "Black collectors" - unlicensed financial organizations, pose a challenge in the market, with violations of citizens' rights and questionable debt collection methods seemingly unwaivable. Penalties for such breaches are often underwhelming, allowing the malpractice to persist. Nonetheless, regulations introduced since 2016 have prompted creditors to mend their ways, with debtors now most frequently complain about the actions of microfinance organizations (MFOs) - which often work with problematic creditors.
Sources:
- Money.ru
- Gazprom Vneshney Beg
- Expert Magazine
- Finanzas.ru
In light of the increasing practicability displayed by professional collection agencies (PCAs), a sizeable amount of personal-finance management involves business-oriented strategies to maintain debt repayments, with an average of approximately 5,354 rubles deemed tolerable by the National Association of Professional Collection Agencies (NAPCA). This trend is in stark contrast to the informal debt settlements favored by over 50% of clients.
Amidst these financial changes in Russia, issues persist, as evidenced by the over 9,000 valid complaints against debt collectors registered in 2025. Futile penalties for malpractices enable the activity of unlicensed financial organizations, often referred to as 'black collectors', which contribute to the shadowing of the debt collection market.
