COLLECTING PAST DUE ACCOUNTS: - The Threat of Bad Credit
by Jim Finucan
Published on this site: May 13th, 2005 - See
more articles from this month...
Businesses, which are members of credit bureaus, report their delinquent
debts to those bureaus. Such delinquencies stay on the debtors credit
report for seven years. That can be a financial prison sentence.
You can use this fact as a powerful tool in your collection attempts.
If the debtor is a young man who seems to have a lax or indifferent
attitude, ask him if he expects to apply for an auto loan in the
future. Hiss response will dictate the direction you take the conversation.
"Are you concerned about your credit being affected by this
bill?"
"No."
"Mr. Jones, would you agree with me that a person's credit
says a lot about who they are?"
"Not really."
"Well, that might be easy to say now but I can't count
the number of times I've had this same conversation with someone,
only to have them call me up months later complaining that
it's my fault they can't get the home or car loan because
this bill is affecting their credit rating. You're an unemployed
student now, but when you're ready to apply for a job, they
could run a credit check on you and then ask you why you don't
pay your bills."
Now, while your words are having an effect, dun for the balance
in full. If things go quiet say something like:
"Paying this $918 could be the best money you ever spent,
as an investment in your own future."
This credit dun doesn't always work. Some people just don't care.
If it isn't working take another track. Try and find something
else that will hook the debtor into paying the bill. You must
move and move decisively to find the debtor's weak spot and
then use that opening to achieve your goal.
Jim Finucan knows all about the dances, dodges and delays
debtors
will try to pull. Let Jim show you how to double or even triple
the money you collect from your accounts receivable. Check out his
unique collections manual "Past Due." For more information
visit: http://www.tiare.com/pastdue.htm
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