Debt Collection Techniques For Collecting Debts in an Increasingly Tight Economy...

by Kristina Pattison
(Kentucky)

As a psychologist, small business owner, and a former banker, I often am asked about the best ways to motivate people to pay their bills. While fear is often cited as a primary motivator for humans, it is important to remember that there is a threshold at which fear ceases to motivate folks.

In this increasingly tight economy it is likely that you are not the only business contacting any given default. If your approach is just one more threatening voice on the phone you will merely add to the choir of voices leaving the debtor numb to the problem.

This veritable host of voices does give you a great opportunity, though! It gives you the chance to be the one "reasonable" business. Think of it as a big game of good cop/bad cop. Pushy won't work, instead, give some small indication that you can empathize with the customer.

Often, simply kindly offering a payment reduction you would have accepted all along will get you a lot more cash in hand than previous tactics. A fact that often gets lost in collections rhetoric is that people feel most motivated to pay those they have a personal connection to.

Make your connection with the customer personal to win that loyalty when they do have a few dollars in stimulus money or have managed to regain employment. It has worked for us!