What Are Some Effective Methods for Collecting a Debt?


Quick Answer

Effective methods for collecting debts include sending demand letters with details about the debt and offering different payment arrangements, according to Nolo. If these methods don't work, contact a collection agency to send letters to the debtor.

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Full Answer

Avoid getting personal when contact someone to collect a debt, recommends Nolo. Keep the conversation short, and only talk about details of the debt, including what it is for, when it is due and the total amount. Consider providing different payment arrangements if it can't be paid in full, such as reducing the monthly payment or accepting multiple, smaller payments. Another option is to allow for an extension on the due date if the person agrees to pay the full balance.

Demand letters are sent in addition to other forms of communication, which detail the debt amount and due date, as stated by Nolo. Letters are often more efficient when sent by a collection agency.

When attempting to collect a debt, it is important to follow proper rules and regulations, notes the Better Business Bureau. This includes not calling the individual before 8:00 a.m. or after 9:00 p.m. Debtors represented by an attorney can't be contacted directly, you must contact their attorney instead.

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