4 Types of Debtors
Most people pay their debts on a timely basis. Some do not. There are basically 4 types of debtors that do not pay on a regular payment schedule.
This is the hardest kind to collect from. In their mind if they do not hear from you about the debt, then the debt does not exists. consequently, they do everything that they can to avoid contact. And if you do make contact they will try everything to get you off track. They will get you to try and focus on less important instances of the account, for example…it is your fault that you sent the letter to the wrong address, your company was not suppose to cash a check until a certain day, they never got your messages because you were leaving them at the wrong number, and on and on. This is where being the specialized collector comes into play. You must keep focused, in spite of of the smoke screen thrown at you. Get control of the conversation and keep it.
This debtor is a hard worker. They are by character, proud and do not easily ask for help. They go to work everyday, most of the time already when they are sick. They honestly believe that if they work just a little harder they will make the money necessary to pay off the debt. The problem is there is ALWAYS something that comes up and takes their money. The specialized collector will show respect to this debtor and gentle nudge with ideas on how to better budget. If necessary let the debtor think it was their idea.
This debtor is not exactly grounded in reality. They believe that somehow tomorrow it will all work out. They believe that the payment date at the end of the month is fine because the money will just appear from somewhere. If they do not have the money today, it will be here tomorrow. The specialized collector directs the debtor in the best direction to go. First, by asking questions that gets the debtor to understand that they as the debtor must make a plan, AND STICK TO IT.
The Frustrated Student
This debtor will probably fuss, yell, cry and vent in some other way within your conversation. It is important to observe that the magician’s assistant will possible act the same way. But, their reasoning is completely different. The magician’s assistant will act out for the purpose of a smoke screen. The frustrated student is doing so because they are mad at themselves, their situation and their financial abilities. They want to take care of the debt but have no idea how. The specialized collector will determine the difference. Then, will explain to the debtor that the frustration is normal, but both of you working together will find a successful answer.
It is important to determine the kind of debtor that you are dealing with. Once you have determined the debtor’s style you will have a better opportunity to conquer any objections that the debtor has in trying to repay their debt.