Hi everyone! Today I thought I would mix it up a little- so far, all we have talked about is how to get paid from your customers. But what if it is you who OWES the money? I present to you the top 5 ways to deal with suppliers, creditors and debt collectors chasing you for payment.
1. Communicate with your creditors- I simply cannot stress how vital this is. If they call and leave a message, call them back. Reply to emails, texts, in fact even just pick up the phone and take the initiative to call them. Guys if you cannot pay in full, creditors are always more likely to help out those who are actively trying to do the right thing. The worse thing you can do is bury your head in the sand and hope it will go away. It doesn’t, trust me, I know!
2. Be honest- Again, this is vital. If you do not have the whole amount, just say so. Explain that things are tough but you acknowledge their debt and are trying your absolute best to pay them as quickly as possible. Do not commit to something you know you cannot possibly do, whether it be making a payment, sending an email outlining your circumstances, etc.
3. Never allow yourself to be patronized, judged or made to feel worthless. Remember, debt works in a vicious cycle and your creditor chasing you may be becoming desperate as he is also being chased by his creditor. With debt collectors in particular, we are highly regulated and never ever ever should you be talked down to or in a condescending manner. Comments like “you should know better”, “you should have paid this by now”, “surely you can afford it” should be reported immediately. Just because you owe money, doesn’t make you a bad person and you should never allow someone to make you feel this way.
4. If you are being charged interest, ask for it to be stopped or reduced for a lump sum. Money talks guys, and $1000 now is worth so much more than $100 per week. Make it work for your benefit.
5. Focus on paying off smaller debts first. Making the final payment on a debt is a wonderful feeling and you should feel proud, regardless of how much the debt was, that you paid in full. Keep records of all payments you make, along with a running tally of the remaining balance. Excel is great for this.
There you go guys. This advice works just as well for your own personal debts also, not just for your business. I spent 7 years before I started Collectmore working for a company called Credit Corp Limited, the largest debt buyer in Australia. Chasing outstanding personal loans and credit cards, I saw it all. Just email me if you would like more specific help or advice. Cheers