Christian Debt Recovery Programs

Businesses often decide to use Christian debt recovery programs to collect outstanding payments from delinquent clients. When customers don't pay, income drops and the company suffers. Time is precious. Owners can't spend hours each day trying to collect delinquent payments. But the money is necessary. Company loans and ongoing bills need to be paid. Many don't know where to even start. If not handled, debt can easily rise to an unmanageable dollar amount.

Recovering debt is not an easy task for any business, large or small. It involves two detailed processes: negotiation and recovery. Most business owners or, if the company is large enough, an accounts payable person will contact the customer via phone or mail to make the aware of the debt and discuss a repayment plan. Many times, reworking payments to fit the customer's budget is all that is needed. Other times, businesses will agree to settle, writing off a portion of the amount due. The Bible tells us to be willing to forgive the debts others owe us. "And when ye stand praying, forgive, if ye have ought against any: that your Father also which is in heaven may forgive you your trespasses." (Mark 11:25)

Recovery involves the actually collection of funds. Preferably, this happens out of court, which should be a last resort. Small amounts, under $2,000 are usually written off. Delinquent payments between $2,000 and $6,000 can be taken to small claims court. A letter is usually issued to the delinquent client, who then has 28 days to pay off the debt or reach an agreement with the company. If no agreement is made, then a hearing must be scheduled. Legal actions can be taken against individuals, partnerships, businesses and corporations. Although the cost of filing and issues a claim is small, the procedure can be very daunting. Debt recovery programs can take the stress out of the negotiation and recovery processes and even assist with legal proceedings if necessary. Using standard collection agencies are the most popular. But there are many other types of programs available.

Most debt recovery programs work with a company to collect overdue payments, but leave control in the hands of the business owner. Agents work with the owner to prioritize a list of clients who have a reputation for nonpayment, and then with the accounts payable person or department to contact individuals on that list, set up repayment schedules or work on some type of agreement for partial payment. Many agencies have attorneys on staff to ensure that the legal requirements are followed in collecting debt. These agents will manage all communications with the customer from the beginning: phone calls, letters, negotiations, and follow up calls. If legal action is necessary, they will work with the business' attorneys to build a solid case. With the help of these debt recovery programs, companies often receive repayments faster which boosts their cash flow sooner than if attempted without outside assistance, leaving business owners with more time to focus on their businesses.

However, companies need to take caution in selecting an appropriate service. Debt recovery programs represent the company and can give that company a good or bad name in the industry. No business owner wants to gain a reputation for either extreme - either being too rigid to work with individual situations or being too much of a push-over. Finding that balance with a program can be difficult. Some agencies, known as strong-arm firms, can really overwhelm clients. They fight against establishing a middle-ground plan that might work for an individual. As a result, the individual may never again seek services from the business. Professional agencies have a straightforward approach and are able to be specific about payment needs without applying force to a situation. These agents come across as more as a liaison in trying to achieve a settlement that works for both parties involved. Another consideration in selecting among debt recovery programs is cost. Some agencies will charge a flat fee while others will only request commission on the monies retrieved. Also take into consideration an agency's recovery rates - how much success they have had in recovering debt from customers. Agencies that have higher recovery rates usually will charge more for their services, but they will often get better results in the long term.

Another option for people seeking debt recovery programs is to invest in software packages that specialize in this specific need. There are literally hundreds of programs to choose from and the number continues to grow as computer technology advances. These software programs contain personal information on all clientele. When a customer turns delinquent on an account, the system has the capability to automatically turn them over to a collections service, almost immediately, with little effort. Many programs contain a guided interview with easy to answer questions that facilitate information management. It allows inexperienced business owners to manage outstanding payments without outsourcing. However, when choosing software packages, entrepreneurs must make sure that they choose a system that works with current operating systems and databases as well as programs that are being outsourced to other companies such as letter mailing services or electronic funds. Software packages are available in keyboard and graphical-interface systems, so skill level and technical knowledge of employees must also be evaluated. Using this technology can drastically reduce the number of delinquencies and it's virtually paperless.

The best practice in choosing among debt recovery programs is to select one based on the specific services and needs of the individual company. Keep in mind that not every program will work for every business. Some will find that a full agency serves their needs best while others may choose a software package. Whatever the program selected, the important thing is to find the balance between getting what is due and losing a business. Working with customers whether they be individuals, other businesses or large corporations can go a long way in developing lasting relationships that will carry into the future.

Christian Debt Recovery Solutions

Debt recovery solutions is a buzz phrase for ways to get out from under a crushing mountain of borrowed money that has left a family or individual unable to pay for all of life's bare necessities and the debt as well. Answers for getting out of this burden are often provided by books and pamphlets that a consumer can get at a local library. But they also can be gleaned from talking to a credit counseling service which can offer debt recovery solutions that make a profound difference in a person's life. Credit counseling services, sometimes referred to as debt recovery services work with most credit and loan providers to craft a plan for its clients to pay off debts within five years. Within the standard plan created for each client, a credit counseling service has specific action plans to reduce a consumer's debt as quickly as possible.

One strategy from debt recovery solutions companies is to negotiate with lenders to lower interest rates down to very low levels in order to facilitate speedy payoffs. When a credit card company or other creditor receives a call from a credit counseling service, the company knows that the client has already been thoroughly vetted by the counseling service. Issues such as the number of late payments, depth of debt on each account and income level have already been worked out ahead of the call to the creditor. It then becomes the job of the counseling service to negotiate the lowest possible interest rates so that the client's overall monthly credit payments are cut by at least forty percent. And don't think that the creditors aren't willing to do so because they know that the principle plus a little interest is a whole lot better than the debtor defaulting on all the money owed! Mr. Marley does have a heart after all!

A second strategy from debt recovery solutions experts is to maintain the level of payments every month. With a credit counseling service, a workable, single monthly payment for all debts is established at the beginning of the process and so each month the client sends in money to the counseling service which then takes about ten percent for its own profit and sends the rest along to the various creditors. One of the reasons for the success that counseling services can have runs counter to what the typical bill payer will do. Take Mr. Never Do More Than You Have To. This guy is the one who takes his grocery shopping cart to the parking lot corral, but only puts in the front two wheels. As soon as an account of his is paid off, does he take the money he had been paying on that paid off account and put it on another account as payment toward the principle? No, he is off looking for a way to spend the extra money, and so do many other debtors as well.

Unlike our Never Do More Than You Have To friend, the secret to debt recovery solutions counseling is that when the initial account is paid off, the monthly payment doesn't drop. Instead, the extra money starts being poured into another account as an extra payment on principle. As the months and years roll along, the same monthly payment provides more and more money for the principle on each account until, within five years, all the debt is gone. When that load is lifted from a person, it can be a glorious feeling. Another glorious feeling is when we know that God has forgiven all of our sins, past, present and future. "Therefore, if any man be in Christ, he is a new creature; old things are passed away: behold, all things are become new." (II Corinthians 5:17)

The third strategy from debt recovery solutions providers is to pay a little extra every month beyond the minimum payment. If a person pays just the minimum payment on revolving charge cards, the earth will have entered a new geological age before pay off. Did you know that paying an extra house payment each year can drop a thirty year fixed mortgage down to twenty one years? It's amazing what paying a little extra on any loan can do to shorten its life! So debt recovery solutions providers can do amazing things for their customers. But it doesn't come without a price and it's not the monthly 10% charge.

Chapter thirteen bankruptcies are legal proceedings in which the debtor doesn't want to default on any of his loans, but does want to have the payments stretches out over a longer time so the monthly payments are not so crushing. Chapter thirteen bankruptcy means that a debtor will not have to lose any assets and that is a good thing. Chapter thirteen bankruptcy means that a Christian can escape the guilt that often comes from walking away entirely from his debts, which is the format of chapter seven bankruptcies. Does any of this sound vaguely familiar to debt recovery solutions? The one thing that a credit counseling service will probably not stress enough is that when the solutions that have been talked about are applied to a person's debt, the result is a black mark on the credit report almost as dark and negative as a chapter thirteen bankruptcy would be. Credit counseling services may be the only solution, and it may be a stigma that one will have to bear for a number of years, but the scar does go away eventually and life goes on.

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