Let’s face it, creditors loath trying to collect delinquent debt. It’s not so much the fact that the money is late. It’s because most creditors are not treated fairly by the majority of businesses in financial hardship. Debtors (most of whom “go it alone” in dealing with collectors) tend to ignore collection efforts, or they respond with false promises and misinformation 債務舒緩計劃. The false promises made to creditors erode credibility, and the only option creditors have in protecting their rights is litigation. It’s no wonder our court system is so clogged with cases.
Whether you “go it alone” or hire a professional debt management company, if you have overdue debt that needs resolution you will benefit greatly by making a strong effort to improve your credibility standing with creditors and/or collectors. Improving credibility will result in real concessions to you from creditors, creating more favorable repayment terms and further reductions in the amount creditors will accept to settle your debt.
Because debt negotiation is a relationship-driven activity. The quality of the “debtor-creditor” relationship between the debtor and the creditor drives the timeliness of communications, the exchange of payment and settlement offers, the exchange and review of financial information, the creditor’s perception of the debtor’s cash flow problems, the creditor/collector’s willingness to “go to the mat” with superiors to get reasonable offers considered, etc. Improved credibility can enable you to increase the quality of the debtor-creditor relationship by turning your creditors into allies, effectively getting creditors on your side.
Failing to improve a bad credibility perception will leave a debtor in a low priority position with creditors, and statistics show that in these situations debt negotiations will take longer, will be less meaningful, will produce less settlements, and will cost both parties more to administer. In addition, the settlements that do occur will be less favorable to you. This is because an insufficient relationship exists (post-debt) to drive an honest and reasonable settlement. In the debt management industry, this phenomenon is known as a “lack of momentum”.