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| How to get out of debts? |
If someone owes you an outstanding debt that you are struggling to recover, you should not give up on that. In this guide, we will discuss the best possible ways to recover debts, which we will consider as bad debts.
Effective debt control and recovery processes can keep your company floating or your personal finances in check. A reply from your creditor can be met in several ways to expedite full or immediate payment of the debt. Here are some ways for you to increase collectability of bad debts or past due accounts.
Already Paid Excuse. If the debtor tells you that a check is already sent to settle the debt, you have to be quick and creative. Of course, you need to get details of the check, if there's any. Ask when was the check sent and to whom the check was sent. If after verification, the person (whom the check or payment was sent) did not receive the said check and the ten-day mailing period elapsed, ask for a new check. Assure the customer that if you will only encash one check, if ever there's a previous one.
If ever the check has been sent to the bank, be sure to call your bank to verify clearing of the said check. You need to know if the check reached the bank and the payment was credited to the account of the company. If the check was not cleared, for some reason, you need to ask for a new check.
Can't Pay Now. What has been the problem? Are there some ways to resolve the matter? If the person has defaulted on the pre-payment for a long time, you need to suspend the credit. After suspending the credit, you can offer a new repayment schedule or term.
However, if the default has been for a short period, it is good to give a leeway to the debtor. You can always negotiate on a payment option. Postponement of payment is a good option, or you can ask for installment repayment. Ask for a half payment at the moment, and specify a date for the balance.
Won't Pay Ever. As long as the debtor is willing to pay, you can't seek legal help. At the event of refusal to pay, however, you can ask for legal remedies. Of course, you can't put someone to jail because of defaulting to pay debt, but the court can protect you from an unwilling-to-pay debtor.
Promise to Pay. You don't have to harass the debtor. You can always ask them if they can pay on a specific date. A promise to pay on a specific date is better than never at all. Be grateful to the cooperation of the debtor and wait for that date.
