| |
| |
|
|
Credit Information |
|
Collection Agency Secrets for Collecting on Bad Debt
Getting worried that one of your clients, customers or patients will never pay? Have you given up on a customer who's essentially said he won't pay? Congratulations--being stiffed by a customer or patient is a milestone in the growth of a business or medical practice. But even the most hopeless of bad debts can sometimes be collected-collection agencies have been doing it for years. Here are six of their secrets. 1) Don't just call, write. 2) Don't ask if, ask when. 3) Be nice. 4) Be cooperative 5) Know the value of your time But don't just let this fear linger in the back of your mind, fighting with the little voice that says you want your money. To get a rough idea of how much time you can afford to spend collecting the debt, and whether you have the time to do it at all, sit down and write out a rough estimate of the value of your time, the likelihood of collecting, and the amount you are owed. For instance, let's say you are going to assign this task to an administrative assistant whose time is worth $15/hour. The debt is $1000. It is owed you by an old customer who is three months behind but has never been seriously delinquent before, so you say you have a 50% chance of getting the money, making the value of the collection about $500. You divide $500 by $15 and find that your assistant could spend 33 hours collecting the debt before it lost your company money. However, you'd probably still feel a little unsure about whether it was all worth it. Your feelings would be correct: there's still the opportunity cost of all the work your assistant won't be doing to keep your business moving. To be safe, you can also estimate the opportunity cost at another $15/hour, which means you can only really afford to have your assistant spend half as much time, or 16 and a half hours. If you've already spent that much time already, it's time either to call it quits or call in the professionals. 6) Get a collection agency Steve Austin is a regular contributor to Let No Debt Remain Outstanding (http://www.let-no-debt-remain-outstanding.com/), a website with articles on choosing a collection agency, along with recommended the best collection agencies.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
How To Get a Low Interest Credit Card Consumers often have the first credit card that they ever applied for, never really analizing how the interest rate affects their payments, but many other options exist and can help consumers decrease their payments and achieve financial stability.With interest rates on some credit cards rising to over 23%, even low balance credit card debt can be crippling. Credit Report - Watch Out for Parking Tickets The economic downturn of the last five years has affected millions of Americans, but it has also affected the budgets of states, cities and counties. With limited tax dollars with which to work, various government entities have had to try to stretch their budgets to allow them to continue to function. Consumer Credit Reports A consumer credit report is a factual record of an individual's credit payment history. It is provided for a purpose permitted by law: to help a credit grantor or lender quickly and objectively decide whether to grant you credit. Credit Repair Myths and Facts There are no secrets to repairing your credit. Many shady credit repair agencies would love you to think the contrary. Is Plastic Making You Happier? If you're like most people, you probably own at least one.And like most people, you've maybe never thought what it's really costing you?At a recent conference held by the Fabian Society at London's Imperial college, one of the issues discussed was happiness, and, more specifically, why it seems to elude so many of us. How Your Credit History Can Affect Your Life Your credit history is an important aspect of your life. Maintaining your credit rating is very important to your future and to your lifestyle. Credit Card Companies Are Out for Your Money You're probably thinking "Tell me something I don't know" but in this time of low interest rates you might be thinking that you've got a great deal since credit card interest rates are low. Wrong. Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers What is trade credit?One of the major differences between consumer and commercial transactions is that most, if not all, consumer transactions are paid in cash or by credit card at the time of sale. Because of this, most consumer businesses never have to worry about extending credit to a customer and can run their operations on an "all cash" basis. What You Should Know About Credit Counseling Credit counseling is a free service that many people with money problems have turned to in the face of financial ruin. Credit counseling companies negotiate with your creditors to reach financial solutions that benefit both you and your creditors. It Takes Credit To Build Credit Using a credit card wisely is an important step in building a good credit rating. If you're trying to re-build your credit or if you're young and just starting out, pay close attention the next time you receive a new card offer in the mail. Bankruptcy vs. Credit Counseling: What Should I Do? Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you. Credit Counseling -- Why It Doesnt Work For Most Debtors "Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!"When you see ads like this, they are often from Credit Counseling firms. 10 Tips To Prevent Credit Card Fraud Imagine opening your credit card statement one morning and discovering to your horror that you suddenly owe thousands of dollars - on purchases that you never made.Impossible?Credit card fraud on the rise, so you need to treat your card and its information with extreme care. 10 Dirty Tricks Credit Card Companies Play The credit card companies make billions each year in legitimate interest charges and fees, but are under constant pressure from the shareholders to increase their earnings. To make this extra money the credit card companies sometime adopt some dirty tricks to make this money. Opting For A Credit Card? Check Out Certain Terms You've just received a "pre-approved" credit card offer in your mail. Without wasting a minute you're ready to accept it, especially if it's the "before-the-offer-expires" one. Legislators Ponder New Credit Protection Laws Legislators in Washington, D.C. Free Credit Report - Really 2005 marks the year that consumers will be able to get a free credit report each year. The roll out of the Fair and Accurate Credit Transaction Act signed into law by President Bush actually began last December 1. Credit Card Incentives Credit card companies want your business. After all, lending money to people is profitable. Know Your Credit Card Rights When you apply for a credit card, the application that you sign is also a legally binding contract laying out all the termsbetween you and the bank, such as the interest rate and how its calculated, the grace period, whether there's an annual fee, etc.While you have to agree to the terms and sign if you want the credit card and while the lender will certainly hold you to the terms, the lender doesn't feel similarly committed. 5 Killer Steps to avoid Credit Card SCAMS! In August, 2004, the Federal Trade Commission issued their findings of a recent study, which showed that nearly 25 million adults were victims of fraud.Now, most importantly, If you are a victim of fraud, please do not feel like you did anything wrong.
|
||||||||||||||||||
