I Have Learned a Few Successful
Debt Collection Techniques

by Cedric Logan
(New York, NY)

Through trial and error, I have learned that during tough economic times, the best successful debt collection techniques involve only three important things: communication, communication, communication!

When the economy is in a shambles and people are struggling to get by, debtors are cognizant of how important it is to pay debts, but they are simply unable to pay all their debts at once.

The creditors who apply the debt collection technique of communication can often avoid forcing the debtor into bankruptcy. Furthermore, if the creditor is firm but polite, the debtor will have good will for the creditor, and will pay that creditor first.

A creditor should start with a polite letter, preferably signed by hand. If that does not work, a phone call on a Friday (when people are in the best mood) is best. Do not make scary threats - rather, the creditor should work on creating good will in the debtor. Offer to suspend required payments for a month, or try to settle on a lower interest rate. The important thing is to let the debtor know that you are willing to negotiate.

Of course, if negotiations fail, the creditor can always become more aggressive. However, it is usually cheaper and easier on the creditor to try to get the debtor to pay the debt voluntarily and with as little conflict as possible.