Build Your Power Of Persuasion By Practicing 6 Simple Techniques

“When you collect bad loans… you sure learn a lot about making good ones. You also learn a lot about the power of persuasion, persistence and desperation” – John Stumpf

We all use persuasion in our daily lives, both at home and at work.  But, now you can purposefully increase you power of persuasion by following and practicing these simple scientifically proven techniques.  Use them at home, with your kids, partners, friends, at work, when you negotiate, when you debt collect. Not only that you will end up with much better overall  results in what you are doing, it will subtly show you ways to become much more considerate of others and will generally make you a better person.  Try these simple steps in your life and business and you will soon be seeing proven results. Continue reading

Simple Debt Collecting Strategy: Kindness & Empathy

“My religion is kindness” – Dalai Lama

Professional debt collectors know that most people end up with debt as a result of other life difficulties. It is also obvious that most people are decent and would love to sort out their financials; do the right thing and pay their debt. What is less obvious to inexperienced collectors and many creditors is that a simple strategy of kindness & empathy would take you much further with people and give you better results with collecting.

Finally some bigger debt collecting agencies are embracing this simple strategy and really helping both, debtors and creditors.

There is no better reward than making a difference in someone’s life. Have a look at this amazing group of people helpers!

Who To Call 1st When Debt Collecting?

This is a very frequent question from people who debt collect in their businesses. 

Obviously, you would need to call ALL clients or customers with outstanding and due accounts.  However, “Who to call 1st when debt collecting?” is a GREAT question, as there are different views and positions on this from different debt collecting professionals.

Who you call 1st really depends on the internal debt collecting system you have established and on your overall cash position in the business.   Any of the below listed approaches could work Continue reading

13 Secrets to New Year’s Debt Collecting

“Nobody can go back and start a new beginning, but anyone can start today and make a new ending.” – Maria Robinson 

This year is about to end and this is the best time to plan what you want the coming year to be, especially when it comes to your finances. If this year hasn’t been too kind to you because of increasing debt, then start planning and changing things now. Contrary to the belief that creating resolutions on the first day of the year is more effective, this doesn’t hold true when we are talking about debt recovery for your business. The earlier you plan your financial strategy and start recovering from debt, the more time you’ll have to monitor it and check how it can impact your cash flow system. Continue reading

Using Psychology in Debt Collection Letters

“It takes two to write a letter as much as it takes two to make a quarrel”. – Elizabeth Drew 

Continuation of “How to Write a Perfect Debt Collecting Letter or Email?” (Part 2)

Putting the writing style on the side, debt collecting letters and emails have to be written in accordance to the debt collecting guidelines prescribed by the government.   In Australia the debt collectors are limited in what they can do and say by the Fair Debt Collection Practices Act.  Make sure you know them and have a solid grasp of the basic guidelines.  Make sure you follow them in all your correspondence or conversations with your customers. Continue reading

How to Write a Perfect Debt Collecting Letter or Email?

“The secret of many a man’s success in the world resides in his insight into the moods of men and his tact in dealing with them.” – JG Holland 

If you have ever received a debt collecting reminder letter or email, I am sure you have absolutely hated it and couldn’t even finish reading it in its entirety.  They are annoying, frustrating and a reminder that we have not done the right thing.  Not many people would have a desire to look at it again or remember it.

On another hand, if you have ever attempted  to write a debt collecting letter to send it to your customers, you would have had another kind of challenge and would have asked yourself many of these questions: Continue reading

20/80 Rule In Debt Collecting – Pay Attention

“Discipline is not the cage, discipline is the key.” – Denver M Lane 

Debt Collecting Techniques

Have you ever heard of the 20/80 rule?

It is basically a rule that shows that eighty percent of the output comes from twenty percent of the input.  This is the Pareto Principle, or as it is more commonly known, the 80/20 Rule.

It has been proven over and over that the rule DOES work. Continue reading

Essential Debt Collecting Skills – Negotiating (Part 4)

“The secret of many a man’s success in the world resides in his insight into the moods of men and his tact in dealing with them.” – JG Holland 

Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 3)

Negotiating is a necessary life skill we all have to some degree. It enables us to achieve the best results for both ourselves and the other person. Unfortunately in lots of businesses negotiation is an area that is often neglected, but that can improve a firm’s profitability as well as its standing in the eyes of its clients. This continuation of negotiating tips has been written to provide guidance in negotiation skills to debt collectors, but it is also a general guidance in everyday life negotiating. So, what are some other principles worth using in negotiating? Continue reading

Essential Debt Collecting Skills – Negotiating (Part 3)

“Quality in a service or product is not what you put into it.  It is what the client or customer gets out of it.” – Peter Drucker 

Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 2)

‘Since negotiation is the process we use from infancy until just before we die, the issue is not a matter of recognizing that negotiation is a fundamental life skill. The real goal should be to understand how to negotiate effectively to reach wise solutions to all kinds of issues. Continue reading

Essential Debt Collecting Skills – Negotiating (Part 2)

“I’d like to add that negotiating is not something to be avoided or feared – it’s an everyday part of life.” – Leigh Steinberg

Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 1) 

Negotiation is a rather complex interaction. Capturing and controlling all its complexity is a very difficult task that requires knowledge, understanding and lots of practice.  Below are some of the essentials of negotiating:

  • Know what you are trying to achieve

Having a clearly defined goal before you start the process of negotiation is a must.  At first, it really helps if you write it down and keep it somehow visible for yourself.  Later, when you get more practice and experience this would come naturally as the first step. Continue reading