Collecting money from debtors

Money can be a sensitive issue, especially when it’s owed. Trying to collect money from people who owe you is tricky as we feel uncomfortable about asking. We don’t want anyone to think that we’re tight-fisted or struggling for cash, so oftentimes we simply let it slide and hope the other party pays us back of their own accord.

Unfortunately, that doesn’t always happen.

We’ve put together this list of nine easy-to-follow steps to help you take charge of the situation.

1. Set a timeframe

If a repayment date hasn’t been set, choose a point beyond which you don’t believe the other person will repay you without being asked. Once this date has passed, further action will be required.

2. A gentle reminder

It’s possible that the other party has simply forgotten to pay you back. Dropping a polite reminder might be all that it takes.

3. Alternatives

If you think the debtor might genuinely be struggling to pay you back, consider offering them an alternative. Paying some money now and more later might be a viable option, or doing a favour might suffice.

4. Be more direct

If they still haven’t made efforts to sort you out, it’s time to get more serious. Change your tone from, “You won’t forget about that money?” to “I need to get that money off you.”

5. Escalate.

By this stage, it’s likely that they just don’t want or are unable to pay you back. Be persistent and continue to make contact with them in order to increase the pressure.

6. Don’t go too far

There’s a difference between turning up the pressure and harassment. Don’t call at unreasonable hours or use threatening language. Be firm but keep your head.

7. 3rd Party

Things are getting serious now. It may be time to call in the professionals. The person clearly doesn’t seem to be worried about what you have to say, but hiring a collection agency might drive home the gravity of the situation.

8. Get litigious

If you feel like you’ve exhausted all of your other options and the situation still hasn’t been resolved, legal action may be required. Contact your solicitor to discuss your options.

9. Collect

Hopefully you won’t need to take all eight steps to finally get your money back but as long as you arrive at step number 9, that’s all that matters.

For more helpful tips, check out our other blog posts or get in touch today.

Best wishes,

The Team at Gallivan Financial

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One comment

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