Have you been thinking of how to recover a debt?
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.