Other Debt Cited by Late Payers: People...

Other Debt Cited by Late Payers: People who fall behind on a bill payment most frequently say they’re late because they have other debts to pay off, according to a survey of collection agencies and banks.

Nearly a third of 260 agencies surveyed last year by Western Union Financial Services Inc. said debtors cited “other financial obligations” when asked why they were late in paying bills.

Other debts replaced unemployment as the most frequent excuse. In Western Union’s last collections survey, conducted in 1992, 53% of the agencies reported debtors as saying they couldn’t pay their bills because they didn’t have a job. Only 27% cited unemployment last year.

The shift reflects the improved economy, lower unemployment and freer spending habits by consumers, Western Union said.