The day after an account becomes overdue, you should place a polite phone call to the customer who owes you money. If that doesn’t work, you may want to send a few past-due letters yourself, or you may want to go directly to a credit collection agency. Base your decision on how much money is owed to you and the history of your relationship with the customer. If it’s the first time you are doing business with them, you’ll want to call in a credit collection agency earlier than you would with a 10-year customer with a solid credit history.

Most companies call in a credit collection agency once a debt is 60 days to 90 days past due. If you wait much longer than 90 days to begin collecting unpaid receivables, your chance of collecting drops dramatically.

If you discover that your customer has gone out of business, find out what type of business it was – a corporation, a partnership, or a proprietorship. If it was a corporation, don’t bother calling for the help of a collection agency. It is doubtful that you, or any one else, will be able to squeeze the last few nickels out of that client. If the company is a partnership or a proprietorship, you may be able to get the individual owners of the company to pay you out of their own pockets.

If you try to recover an account and fail, consider that bad debt a tax-deductible item (Tax Code IRC 166, Reg. 1.166). You will be able to deduct the cost of the goods sold (but not paid for) as an ordinary business expense. You can’t deduct any lost profits from the sale, nor can you deduct the money owed for services rendered.

Rapid Recovery Solution is a medical debt collection agency. Click here to get your own unique version of this article with free reprint rights.

The majority of students that have just finished their education and are currently looking for jobs attempt to work federal school loan consolidation first. This loan has benefits in a number of ways. First, the government is the source of this loan but it is issued by private lenders. That means that the time you have to repay the loan has the capacity to be extended for a long duration.

Perhaps the most enticing benefit of school loan consolidation is the fact that the multiple student loans are substituted with only one loan. The overall amount of the debt is reduced; at times this reduction can even go up to 60%. This, of course leads to reduction in your monthly payment.

Even better, the new rate of interest is based on the weighted average of the rates that apply on your current loans. You’ll also get rid of the mental stress connected with remembering the details about multiple loans. Consolidation doesn’t require a cosigner or any checking of the credit score, and you can use this opportunity to improve the credit score or rating.

One problem that comes with the situation is that is it is very difficult to prove yourself eligible for the federal school loan consolidation. Typically, you will need the assistance of a good debt consolidation expert to prove that you are eligible for this kind of consolidation. The standards to be qualified for this loan are very rigid, leaving many ineligible for the loan. Nevertheless, it is worthwhile to check to see if you qualify. It could be a good resource for protecting your finances in the future.

Mallory Megan is employed by a debt collection agency. She also writes articles on business, finance, consumer spending and collection agencies. You are welcome to reprint this article – but get your own unique content version here.

PREPARE: Review the paperwork on the debtor before making the call. Know the history of the account, credit record, the promises kept/broken. Have all records in front of you, ready for reference.

ATTITUDE: Adopting a straight, professional, business-like attitude is important. You have a contract or you delivered the goods, money is now owed and you have the right to expect payment. Do not let it become personal. Don’t yell or raise your voice; and NEVER curse. Don’t make idol threats; legal action is your recourse.

CONTACT: It is important that you are talking to the decision maker. Do not let any individuals brush you off with “You’ll have to talk to the bookkeeper.” Identify the person who can cut you a check. If you can not get through after several calls, let the secretary know that you know your calls are being screened. Tell her the purpose of your call and if necessary give a deadline.

CONTROL: Always control the conversation. Keep it focused on the debt and on the repayment schedule. Do not let the debtor sidetrack you with personal history, excuses, etc. Remember, the objective of your call is to collect money, or get a commitment to pay not to become friends with the debtor or win arguments.

FLEXIBLE: Always be prepared to adjust to any situation. Think about the kind of customer you are dealing with and adapt to meet the circumstances. Be prepared to accept a reasonable payment schedule, and a willingness to deal with a customers circumstances.

NOTES: Try to Keep detailed, accurate notes of every single contact with the debtor. Always probe for additional information on the debtor. Notes of these contacts will help you in later phone calls, and may be invaluable if litigation is needed. Great notes will also help in credit decisions in the future or in cases where skip tracing may be needed.

PRODUCTIVE: Keep calls brief and to the point. This is a business call only, not a social one. Try to view your efforts on a ratio of time expended to results achieved. Long conversations usually mean the customer is stalling for time or trapping you in the buddy syndrome.

PRECISE: Never leave a call open ended, such as “Well talk next week,” or “Ill send what I can.” Every single call should result in a commitment to some kind of payment, You need a specific amount, by a specific date, even the check number the customer is using to pay the promise.

TIME: The longer an account is outstanding, the less likely it is that it will be paid. If payment is not arranged or a payment plan is not established within 90 days, place the claim with a collection agency or start legal proceedings.

PLACEMENT: Try to choose an agency that does not have to pay to get your information. Just type in “Collection Agency” to any search engine and pick a firm that ranks organically.

Mallory McGuinness is employed by a collections agency that works with a debt collection lawyer. She also does articles on business, finance, the credit industry and collections agencies. You are welcome to reprint this article – but get your own unique content version here.

The easy calculation requires the interest rates for each debt account only. Assuming that all debt accounts have the same tax liability. If not, you can determine your interest rate after taxes for this calculation.

Your first step is to order your debts; highest interest rate to lowest. You\’ll probably find credit cards at the top of the list. Retail credit cards offered by stores usually have the highest interest rates, so you might find this type of credit card on the top. Make sure that the rates did not fluctuate from the promotional rates that you originally signed up for. Card issuers can change your interest rates at any time. They are supposed to give warning, but you may not receive this warning.

Your home equity loans and your mortgage might be the next debts on the list. It\’s imperative that you capture every debt for which you make a monthly payment. Student loans might be the last on the list.

Next, pay the minimum to all debts every month. You will pay the minimum monthly payment for all of the debts, except for the one account listed at the top of the list.The next thing you want to do is send all extra available cash to the debt with the highest interest. All unused income after paying expenses should be dedicated towards the debt account with the highest interest rate.

Repeat these steps every month. You will protect your finances by making sure every creditor receives the minimum payment, but you will hone in on your debt that has the highest interest. Once a debt account has been eliminated, remove it from the list and re-order if interest rates have changed.

Mallory Megan works for a debt collection company. You can get a unique content version of this article from the Uber Article Directory.