Business & Finance Bankruptcy

How to Collect Debt Tactfully

    • 1). Know the facts. Have the person's debt sitting in front of you. Have an itemized list that shows the amount owed and for what goods and services. You'll often need to refer to specifics throughout the course of collection.

    • 2). Maintain your professionalism. There's nothing personal about collecting a debt, even if it's a personal loan made to a friend. Few things are quite as strictly business as the collection of a debt. Maintain your cool and never, ever resort to bullying.

    • 3). Communicate in both directions. Ask questions of your debtor. Find out why they haven't paid you. And, above all, listen when they answer. Particularly during tight economic times, the "excuses" your debtor is giving may be totally legitimate.

    • 4). Take notes. Have a pen and paper ready and make notes the entire time. Even if the information doesn't seem important at the time, write it down anyway. You may need to refer back to it in future conversations.

    • 5). Be firm, yet flexible. Every debt is different. Remember to adapt to the specifics of each account you're collecting. At the same time, don't be a pushover. Continually remind the debtor (and yourself) that you mean to collect the debt in full. Yet, remember that collecting that debt will probably require working with your debtor, rather than against them.

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