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Your debtor's New Year resolution

Jan 04, 2012 Mike Garretson

This New Year's, between the promises of quitting smoking, losing weight and trying to become friendlier with the in-laws, a debtor should also include erasing their debts in their New Year's resolution. Acquiring that debt can be done more easily with a few tips. Analyze spending habits
Humans are creatures of habit, and those that live responsibly can maintain a moderate level of spending every month. If you notice that your debtor is spending beyond their means, unable to pay off credit cards and delaying payments to your financial agency, you may want to consider sending a warning. If they continue to refuse paying, you may need to take more invasive action - ultimately, you should file a bad credit claim to their credit agency if they're unable to comply with payments that you scheduled with them. Some debtors may need harsh reality and the only way to get them to pay up is through legal action. If your debtor is financially capable of paying their debts, but continue to refuse or "forget" to pay, you should remind them of the consequences of delaying their debt payments. It's simple math and you can pose the question to the debtor: would you rather pay less now or more later? Hiring a third-party debt collector
If you have run out of options or patience with a debtor, you can consider hiring a debt collection agency or skip tracer who may be more experienced in the field of collection. Encouraging a consumer to pay up is an art in itself, as many consumers claim they can't pay while their finances suggest otherwise. When hiring a debt collector, be sure to investigate their reputation in the industry. Hiring a reputable debt collector is essential to maintaining legitimacy within your own company. A debt collector must follow the standards of the Fair Debt Collection Practices Act as they are representing all the clients they are seeking debt payments for.  Stray from negativity
Debt collection is an extremely difficult field and in a tough economy with a scarcity of jobs, it can be increasingly frustrating. Maintain a positive attitude and expect that you will eventually receive payment, rather than fearing the worst.