Adjusting to your debt collector's environment

The economic instability of the United States over the past few years has made it extremely difficult for millions of Americans to find work. According to the U.S. Department of Labor, the unemployment rate remains more than 8 percent. Having an appreciation for a debtor's unemployment and creating a modernized approach may help you gain your debt more easily. Until the economy gains back its form and the unemployment rate dips back to the levels it was at during 2000, consumer and job confidence in the United States may never completely return. Calling or emailing your debtor may be pointless if they are unemployed. They may prefer to tack on interest by not paying during their unemployment, but this choice is ultimately theirs. "A large part of the problem in the economy is one of confidence, and to the extent that sentiment begins improving it would be a positive for growth," Dana Saporta, director of U.S. economic research at Credit Suisse in New York, said in a statement to Bloomberg. "Whether this will be sustained really depends on the employment situation going forward." Before approaching a debtor, run a background check to find if they've recently been hired or fired. This will give you a better gauge as to whether you can expect immediate payment. If a debtor has recently lost their job, you may find it less likely to expect payment from them as they may prefer to pay their essential monthly bills first. Conversely, if a debtor was hired, you should increase your efforts in obtaining the debt. According to the Fair Debt Collections Practices Act, you may not abuse the debtor by contacting them multiple times in rapid succession. The government does not specify what equals "multiple times," but in the event of a complaint it will be judged on a case-by-case basis. For debt collectors that are finding it too difficult to encourage a debtor to pay up, they can file a bad credit report to the individual's credit agency. The credit agency may end up putting a hold on the account, or at the very least inform the debtor of the report.