Succesful Debt Collection Strategies

by Deborah Johnson
(Charlotte, NC USA)

There are many successful debt collection strategies that I have tried, but the one that works the best is when you send a collection notice by certified mail. That way the customer has to sign for it and if the claim goes to court you have proof that they did receive it.

Another debt collection technique that is useful is to make arrangements with the clients and accept some type of payment plan. When you accept a payment plan you have a better chance of recouping some of the past due money. Most customers want to pay off their debts, so give them a chance to do so. Give the client a chance to clear up the account.

Another way to have a successful debt collection is to contact the client during tax refund season or before major holidays. That way there is a higher chance that the client will have finances available to pay off their debt.

Lastly, offer the client a discounted payoff. Usually, you can propose a payment plan that offers the client a discount if they pay off their debt by a certain date. If they don’t pay it off by a certain time you can say that the amount will increase more with the interest rates. This will encourage the client to want to pay the discounted invoice.