Have you been think­ing of how to re­cover a debt?

The Punch - - CONTENT -

Col­lect­ing money from debtors is one of the most sen­si­tive trans­ac­tions be­tween in­di­vid­u­als as it of­ten leads to bad blood, ir­re­spec­tive of the re­la­tion­ship that ex­ists be­tween the par­ties. While many prob­a­bly ar­gue that they had been pa­tient enough, there is re­ally no harm try­ing some of th­ese tech­niques, whether it’s a busi­ness or per­sonal debt

con­tact the debtor with gen­tle but timely re­minder A gen­tle but timely re­minder ei­ther by mail, text mes­sage or phone call should be the first con­tact with the debtor. The time­li­ness would fore­stall the debtor say­ing things like, “you should have re­minded me ear­lier, I have spent the last money on me”. The mes­sage should ex­plic­itly state that you’re just mak­ing him/her aware that the debt hasn’t been paid. This ap­proach al­lows the debtor to save face by claim­ing that he or she ‘didn’t know’ or ‘for­got’. Some­times, th­ese re­minders let debtors re­alise that you don’t in­tend to let the debt just van­ish. In fact, a cer­tain per­cent­age of debtors (hu­mane ones) will pay up as soon as they get the mes­sage. de­mand pay­ment Ac­cord­ing to www.ear­ly­torise.com, at this point, you’re no longer guilty of de­mand­ing for pay­ment. Avoid be­ing hos­tile but make it clear that you are rightly owed money and you ex­pect ei­ther to be paid im­me­di­ately or to have an agree­ment or com­mit­ment as to when pay­ment would be made. Take stronger ap­proach You prob­a­bly have to take le­gal ac­tion such as re­port­ing to the po­lice, a re­spected mem­ber of the fam­ily whom the debtor reveres, es­pe­cially if he/ she just doesn’t feel like pay­ing. Another rea­son one should take a stronger ap­proach is so that the debtor needs to get you to the top of his list of pri­or­i­ties. This will prob­a­bly con­vince him to pay you be­fore he pays some­one else. Your per­sis­tence will pay off. de­ter­mine when you’ll start to take ac­tion against the debtor As frus­trat­ing as the wait­ing pe­riod could be, you don’t want to bring down the ham­mer on a friend, fam­ily, or on a good cus­tomer just be­cause she’s a lit­tle late with a pay­ment. As soon as you start go­ing af­ter your money, your re­la­tion­ship is go­ing to turn into an ad­ver­sar­ial one. So, chances are, you’re go­ing to lose that friend or cus­tomer. But at some point, even in cases like those, you’re go­ing to have to try to col­lect. The ques­tion is when? Af­ter 30 days? 60 days? 90 days? Ev­ery sit­u­a­tion is dif­fer­ent, so you’ll have to de­cide what makes sense. Col­lect­ing money isn’t fun, but you can be as­sertive with­out be­ing threat­en­ing, and civil with­out be­ing in­ef­fec­tive. It’s your money, so there is no rea­son to feel re­luc­tant about us­ing bold tac­tics to col­lect it.

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