Cash Flow - How To Collect 98% Of Business Debts In 28 Days
Too many people go into debt and never realize how to get out of it. They just keep taking on more and more loans. However, there is a way out of this vicious cycle that they are unaware of. That is by collecting 98% percent of your debts in 28 days! That's right, you need to start collecting even the smallest debt because collect fees will not be imposed until this goal has been reached.
Many people believe that to collect 98% of a debt, you must take extreme action, including garnishing your wages. This is simply not true. First, you do not have to wait 28 days. However, if you do go this route, only then will it be okay to garnish wages. If you don't wait the 28 days and instead start collection efforts immediately at first contact with the other party (as soon as they agree they owe you money), it is perfectly acceptable to start an action just after contacting them to inform them of the debt, but then stay on hold until 28 days have passed.
Not only is this method appropriate under the law; it works too... A lot of people owe you money, and unless you take the initiative to get them out of debt, the collection agencies will be the ones who collect for you. The agencies will do this by garnishing your wages. This is unnecessary because most debts are collectable if given just a little time.
The only reason this 98% collection goal is even a goal is because some of these debts have been in collections too long, but they can be collected without having to wait 28 days [details below].
It's that simple!
I have seen people struggling with debt for years, trying to get out of it and not succeeding because they do not know how. They are working hard, but they don't have the information that is required to get themselves out of debt. Some of this information is not readily available because it's just not practical for companies to publish this information in their ads.
On top of that, you will hear the common refrain from collection agencies to "just pay them what you can." They tell you this because if they accrue enough debt for your account, they can earn interest on your account and charge your credit rating higher fees too! You see, their goal is not just to collect the debt; their goal is to make money off of you as well!
The following advice will help you collect 98% of your debts in 28 days or less. This strategy works, but it will require diligence on your part. If you are diligent and follow the advice exactly, you will be able to collect even after they have been in collections for long periods of time. Of course, some debts cannot be collected at all. Some debts may never be collectable (like a utility bill or an old cellphone or cable bill).
Do not let this stop you from trying to collect because sometimes even if someone has not paid a bill in years, they can still pay. You just need to give them time [see below].
There are 7 things you should do to help yourself collect 98% of your debts in 28 days or less:
1. Get ALL Creditors To Update Their Records!
You have probably heard of credit reports and how some companies use them to charge you more money for a loan or credit card. Well, it's also true that if a creditor is reporting your account as "an open collection," this will not increase their profits at all. But they will still want the money and they will continue to receive it even with an "open collection" on their records.
2. Send A Letter To ALL Of Your Creditors!
You need to send all of your creditors a letter and let them know that you are in a difficult financial situation right now (if you are) and that you will be unable to pay them for 60 days. You can even offer to pay an amount equal to the minimum payment each month if they will accept it.
3. Be Patient And Don't Panic: The Creditor May Say "No!"
You will hear from the creditor when they get your letter, but don't be surprised if they turn you down; it happens all the time. However, do not let it discourage you. There is still hope!
4. If You Are Turned Down: Do Not Give Up!
Sometimes creditors will say "no" even if they are not too busy and they want your money. But you can still get the amount in your minimum payment (or more) by calling them again or writing a letter to them again, saying that you were told that they were very busy but now you know this is not true. Also tell them that you really want to make things right with them, so now is the time to start making good on your debt.
5. The Next Step Is To Contact The Collection Agency If You Have Not Heard Back!
If you cannot get a call or a letter returned by your creditor, don't panic. Simply call the collection agency and let them know that you were unable to contact your creditor and that you are trying to make things right with them, so now is the time for your payment and it should be "equal to or greater than the minimum monthly payment." They will quickly accept your offer because they want their money too!
6. If The Collection Agency Does Not Say "yes"; Then Offer To Pay Them More!
The collection agency will probably tell you to pay them more than the minimum payment, which is good because this is what we want. They want their money and they will be happy with whatever they can get. You should try a figure that is higher than their minimum payment (but still reasonable). Write the check immediately and send it to the collection agency!
7. If They Still Do Not Accept Your Offer; Then File Bankruptcy Or Make A Deal With Them!
If your creditor still does not accept your offer after a month, then you really have no choice but to file bankruptcy or come up with another solution.
Conclusion:
Many people do not know that there are different methods of debt collection, but if you follow the steps above, you will be able to collect the vast majority of your debts in a very short period of time. If you have any debt that is more than 4 years old, and it is not reported as "blocked," consider bankruptcy. It's fairly easy to get out of debt once it's been over 4 years old and bankruptcy wipes away most of the negative consequences from your credit history.
What about my local credit union?
You can always contact your local credit union and ask them if they can lower or even waive their fees for an account in collections.