Wednesday, October 7, 2015

Debt Collection: How to Get People to Pay Up

Chasing after debtors and the money they owe you can be incredibly frustrating. However, you’ll be happy to know that there are certain things you can do to improve your chances of collecting on the money you’re owed. In fact, just by using a little “pop psychology,” you can greatly increase your chances of collecting on debts!

Tip #1: Be Kind!
You’ve probably heard the phrase, “you can catch more flies with honey than you can with vinegar,” and that saying, which simply means that you can get more from people by being nice instead of nasty, definitely holds true in the debt collection world.

Even though debtors can be frustrating, always treating them with respect and kindness no matter what increases the chances that they will pay up. It also helps protect your business’s professional reputation.

If you choose to outsource your debt collections to a third party agency, make sure they know that you’re not into aggressive tactics and that you demand kindness and respect for even your most delinquent clients.

Tip #2: Take Notes and Refer Back to Them
It always strikes a positive chord with people when you remember things they’ve said and bring them up again. So, in your conversations with debtors, take note of things they say, like reasons they can’t pay, dates they’ve promised to pay, and more. Not only is this just plain good record keeping, but it also shows them that you’re listening and makes you appear concerned and involved, instead of cold and only out for your money. When people feel valued, they’re more likely to pay.

Tip #3: Keep Reaching Out
Finally, make sure that you are reaching out to and communicating with your clients on a very regular basis.  The more often you touch base with clients, the easier it is for you (and the money you’re owed!) to stay in the forefronts of their minds, greatly increasing the chances that they’ll remember they owe you and pay as soon as they’re able.


If you can follow these “psychological” tips with your delinquent clients, you’ll probably see more money rolling in than you have in quite some time!

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