Recovering payment for overdue debts from debtors often takes some convincing. Threatening debtors with legal battles, garnishment or liens may make it harder for debt collectors to collect owed money in the long run. While these collection methods may be legal, debt collectors often face more resistance from debtors by taking more confrontational collection actions.
There may be a simpler way to recover debts while also giving debtors the option to fulfill their financial obligations. Debt collectors may want to consider offering debtors a flexible payment option. Here is what you should know:
How does a flexible payment plan help recover debts?
A flexible payment plan can allow debtors the option to make regular payments over time, making it easier for them to resolve a debt in full. Not only does a flexible payment plan allow debtors the time to work on their debts but it shows that the debt collector is willing to work with them.
This can help improve the odds of a successful debt repayment. A flexible payment plan can be curated to a debtor’s unique needs, such as allowing debtors the option to break down their payments if they face financial strain. Furthermore, debt collectors can avoid messy collection actions that cost more than it is worth to recover a payment.
Debt collectors can negotiate with debtors to establish a repayment plan that works for everyone. The terms of a repayment plan can establish the total amount the debtor is required to pay, the amount that is paid monthly and the date a payment is made.
Legal guidance can help debt collectors arrange a flexible payment plan with debtors.