You’ve got more accounts than you can
shake a stick at, but where’s the money?
Two months into 2009 we’re seeing collection
placements go up, up, up. Yet while you’re
working extra accounts by the day, the money
isn’t exactly flowing like Niagara Falls. What’s
According to Federal Reserve’s estimates,
debtors owe in excess of $2.5 trillion dollars.
You are competing with mortgages, auto loans,
credit cards and in many cases, daily living
expenses like food and gas. But you’ve always
contended with these things so what’s changed?
Debtors have tapped out their home equity,
retirement funds, consolidation opportunities,
lines of credit and relatives. The usual funding
sources have evaporated leaving you with a
crowd of debtors who have little money to pay
According to some, this is the worst recession
since the Great Depression so what are we to
do? A recent Kaulkin-Ginsberg survey revealed
90% of collection agencies are likely to change
their collection strategies in 2009. Their
findings suggest that governments should follow
suit to stay competitive. We offer four
for updating your collection
Be an advocate, not an adversary.
Softening your approach can persuade debtors
to discuss their debts, an essential first step.
Sharpen your listening skills and plan to ask
plenty of probing questions
in order to
understand the debtors total financial picture.
Encourage debtors to visit with a reputable
credit counselor. Impartial debt counselors can
negotiate with creditors on the debtor’s behalf
for lower payments, interest reductions, and
Credit counselors may not be able to negotiate
settlements but the time is right for debtors to
snag a deal on their credit accounts in
particular. According to a recent New York
Times article, “Credit Card Companies Willing to
Deal Over Debt,” lenders are waiving late fees,
lowering interest charges and several are
prepared to forgive 20-70 percent of the total
debt. Such de