Benefits of Using Services of a Debt Collection Agency

Every company, small, medium or big that is in the financial sector always has ‘receivable income’ in the form of dues owed by customers. If you look at an Annual Accounts Statement there is likely to be a column denoting ‘bad debts’ or pending dues. Some of these amounts may be recovered, some not at all, or through long-winding legal procedures that can stretch through many years. The international accounting firm Pricewaterhouse Coopers (PwC) estimated that in the mid 2000s, external collection agencies recovered debts to the tune of $30 billion annually. This is a whopping amount!

In such cases, companies may either deal with receivables through internal mechanisms or outsource the collection of such amounts owed, to external collection agencies. These are third-party commercial collection agencies contracted by the company to use the skills and resources that the agency has in recovering the amounts due. Such an agency is called a Debt Collection Agency. These agencies are governed by the regulations of the Fair Trade Debt Collection Practices Act and so they have the knowledge and the expertise of the do’s and don’ts associated with the collection of debts.

There are many benefits accruing from using a Debt Collection Agency, among these are:

• The internal accounts department of a company is usually responsible for collecting amounts due to the company; however, ‘ageing receivables’ as long-standing debts are referred to require a lot of time, skill and dedicated effort which may require intensive training. Since delays can cost the company extensively, a third-party service or commercial collection agency is fine-tuned to handle this job exclusively and therefore able to recover money that might otherwise end up not being recovered at all.

• Sales teams in companies that are owed amounts by clients are sometimes not paid their commissions or incentives if monies are outstanding from customers. This forces sales people to spend a great deal of time working to recover the money rather than doing actual sales calls or sales generation for future revenues. This greatly impacts the revenues of a business.

• Acquiring new customers is an expensive task but retaining existing customers is a key factor in the success and longevity of every business. Playing the role of ‘bad cop’ in debt recovery from existing customers is not a function that most companies look forward to as it can have adverse impacts with them. Using a third-party service to send notices for debt recovery usually spurs the person or company owing the money to get into action without seriously affecting relationship with the company.

• In business to business circles, the unwritten policy is to prolong bill payments for as long as possible to allow better cash flows. In some cases, unless a collection agency intervenes to demand payment, checks or outstanding amounts are not released against invoices.

• By paying a collection agency or agent a fixed salary for collecting debts no matter what the amount owed, companies save a lot of money which otherwise would have been spent on paying salaries and additional time and effort in training them to collect dues effectively. Most companies only pay collection agencies when the money is recovered.

Especially, for companies in the financial sector such as banks, extending lines of credit to existing and new customers depends a great deal on keeping ‘ageing receivables’ to the minimum. Only by fuelling growth, can banks succeed in achieving their target deposits and revenues. Therefore by using a commercial collection agency, the bank can expect to recover amounts early, retain customer relationships and credit worthiness as well as ensure that their financial books keep a healthy status.

An Efficient Financial Rescue Plan

Consumer Debt Picture Painted By the Data

To imagine the situation the quotation of data would be greatly helpful. The statistic shows the following debt details of an average household.

A general household owes $15,609 in the credit card sector. It rises 1, 000% when it comes to the mortgage debt and $1,567,006 to be exact. At the end the same figure that is $1,567,006 is associated with student loan debt. The figure depicts that all of the American’s liability of credit card stands at $885 billion.

If we talk about mortgage debts, then it is valued at $8.2 trillion. If we see the fiscal liability in the field of student loan, then they owe $1.8 trillion collectively. This figure is 7.5% greater than the last year. If all these debts are combined, they result in the staggering amount of $11.91 trillion.

Nuts And Bolts of the Rescue Strategy

The following lines deal with strategies that aim at emancipating you from the shackles of the debt. To reach this particular target, you may have to opt for the following programs. You will have to sign a contract to embark upon this part of the modus operandi.

Once agreed, the service provider will be responsible to debate the settlement and final discharge of your unsafe liability, of course on your behalf. In the second place, there comes the Debt Resolution Hardship.

It involves support from an attorney. An attorney will make the possible plan by bearing in mind the exclusive dynamics of your particular situation to pay your debt. This task will need your participation as well.

In the end, let’s talk about the Legal Plan. This will be available for the debtor who wants to use a debt settlement program. There are some plus points attached to this phase in particular. This will enable the signed-up debtor to get the legal documents reviewed. Next, Defense shield too will be available in a creditor lawsuit. Then, none of the court filings will be the debtor’s headache. The last advantage will be of complete court presentation.

Salvation Time Frame

Preparing your credit report is also an important part of the rescue plan. Firstly, the report will identify information. Secondly, it will bear the credit and public record information. Lastly, it will be mentioning recent inquiries. The estimated span of time fluctuates from 12 to 45 months, but it should consider your individual situation.

4 Ways to Get Approved for Auto Loans When You Have Poor Credit

Having a low credit score shouldn’t keep you from driving the car of your dreams. In fact, auto loans are available to people who have a less than stellar credit scores, so don’t let your own numbers stop you. You can obtain the financing you need wanted by using these four tips.

1) Have a Large Down Payment

Financing companies and lenders are more likely to make a payment plan with you if a considerable amount of money is placed down on your advance. Try to save 10-20% of the money you need to pay off the car. You can do this by making a budget plan where you set aside a certain percentage of your income every month. The more money you can put down as a good faith payment for your financing, the better your chances are of getting an auto loan you can use to buy a great automobile.

2) Consider a Co-signer

Do you know someone who has a terrific credit score who may be willing to co-sign auto loans with you? If so, this can increase your chances of getting great financing with lower rates. A co-signer is a person who joins your loan with you, and they take on the responsibility of your payments if you fail to follow through. Often, family members or even your spouse are likely to volunteer to help you in this manner. It’s important that you choose a co-signer who has a credit rating of 700 or better in order to offset your lower score in the eyes of lenders.

3) Show Proof of Credit Responsibility

Perhaps the best way to get auto loans is to prove that you can repay borrowed money. The way you should do this is simple-begin paying off credit cards and other types of advances, starting with the ones you can pay off sooner. You want to be able to show at least six months of reliable and timely payments on everything from credit cards to medical expenses. When you apply for assistance on your car purchase, your lender will look at your credit report and will notice any delinquencies, charge offs, and late payments right away. The less debt you can show on a report, the more likely you’ll be able to get auto loans no matter your score.

4) Bank Where You Want to Get Financing

Choose a banking institution that you would like to get automobile financing from and open a simple checking or savings account that you use a few times a month. This is a great way for you to show good faith that you are able to pay a loan back. Banks and their lending offices are more likely to offer money to customers who use their services already than people who are considered strangers with no reliable history of responsible banking.

Getting a loan to buy an automobile is a great way to build credit and give you more freedom. Use these great tips to get the financing you need and buy a reliable car that you will love.

Tips for Personal Finance

Monitoring income and expenses is a tedious process that requires patience and foresight. While it may be dull to balance your checkbook and ensure bills are being paid, the security provided from managing your money is priceless. By employing a few simple techniques you can make the process both easy and enjoyable.

When I first entered college, I found myself having to manage my first income along with a sizeable amount of bills-rent, groceries, cell phone and recreation money. I spent the first semester going out to eat, to the movies and buying unnecessary items. I soon found that I had blown my savings from my summer job. Instead of having a comfortable financial cushion, I was soon living off a meager income from a part-time campus job-lets just say ramen noodles became a fixture of my diet.

Unfortunately, I had not set up a balanced budget to ensure I was paying all my bills, saving money and allotting for “fun” money. I had overlooked one of the crucial steps for managing money: I did not set up a budget to know how much I was making or spending. It is important to sit down with your pay stubs, bills and receipts to determine how much money can be allotted for each item. In fact, this basic step is really half the battle to ensuring a sound money management strategy.

The repercussions of not having a balanced budget can often cause you actually to lose money. For instance, many banks charge overdraft fees when you buy an item and do not have sufficient funds. While in college, I often found myself not only with depleted bank account but also a hefty overdraft fee-usually around $35 dollars-after not closely monitoring my spending. It is hard to imagine now, but I was actually paying for my poor money management choices.

So, what are a few simple steps to balancing a budget? The first step you must do is actually total the money you receive monthly. Add the sum of all the income or support you receive-whether it is from a job, rental property or a relative. After figuring out your monthly income, next add up all your monthly bills-rent, mortgage, cell phone, water, gas, electricity etc. Once you have both of these numbers, subtract your total income from your expenses and what remains constitutes your surplus from each paycheck.

Now, many people decide to spend their surplus income on personal hobbies or entertainment. While it is certainly appropriate to spend a portion of your income on these items, it is not wise to spend all your extra money on dining, clothes or other luxury items. Instead, saving a portion or investing your money in a personal project allows you to invest in yourself and help you grow as a person. For example, I spent my summers while in college working for a landscape company, so I could invest in my education and myself. Although I had a lot of surplus money from the job-I lived with my parents during the summer and had almost no bills-I choose to invest and save for my education. This investment took years to pay-off, and I had to sacrifice going out and having fun; however, the “nest egg” I saved over the summer helped me pay for college expenses and develop a better future.

Finally, it is important to not see money management or a budget as a hindrance to your life. Instead, it is important to view it as a necessary tool to ensure a successful future. When I save money now, I do not feel as if I am “sacrificing” for tomorrow; rather, I recognize that I am ensuring I will have a safety net later in life. By positioning saving money as a “precaution,” it reframes it as a necessity and a much more essential part of my livelihood-rather than a burdensome sacrifice.

So, the next time you find yourself out of money at the end of the month or paying overdraft fees, reflect back on the techniques you are employing for managing money. Make sure you have developed a balanced budget, allotted “fun” money and are investing in your future. Whether you are a young professional or an individual nearing retirement, it is never too late to develop the skills necessary to managing money. Most importantly, do not think of budgeting money in detrimental manner. Rather than seeing it as a deterrent to your current life, view it as a necessary insurance policy to ensure a bright and secure future.

Networking Untouchables

As the word suggests, there are characters in networking that should not be approached. Networking involves building relationships, learning about others, professional and business development. But along the way, these objectives and goals can be skewed and result in not so successful outcomes for the savvy networker. This article is designed to identify those major hazards and avoid them at all costs.

Listed below are a few helpful tips for navigating around these types of personalities and getting the most productivity out of your networking.

The Quota Networker

This personality type is merely interested in making a quota. Usually a short term goal, they are more focused in gaining a sale, a new client or promoting a product, service or event. Although it is great to use networking and marketing to promote agendas, this personality trait takes it to the extreme. Sometimes, they can lure you in by asking you to a one on one meeting for investing or working opportunities. But the bottom line is reaching that quota. In turn, you are seen as a number or a figure rather than a human being. Warning signs include conversations focused on getting the bottom line or dialogue focused on incorporating into their team. Kindly decline the offer and move along to the next person or connection at a networking event.

The Selling Networker

This particular type just wants to make a sale. Almost similar to the personality type above but much more aggressive. Their view is to sell at any cost. Offering discounted rates, affiliate opportunities and other perks to seal the deal. Once again, networking is great for building business but that should not be the main focus. It is about building relationships and trust as well as camaraderie. This type of aggressive behavior is a huge and unwelcoming turn off. It can instantly shatter your credibility and future opportunities of doing good business and maintaining a healthy professional relationship. If you notice this type of personality, suggest changing the direction of the conversation and focusing on shared interests, overlapping networks or the actual networking event.

The Negative Networker

This personality type is only focused on the negative aspects of networking. They were probably recently laid off, had a career set back or find networking within itself challenging. Their conversations lead towards the not so bright side of networking. Although networking is not always rosy, it is still a useful and powerful business and social tool for advancement. It involves lots of dynamics for success, productive and profitability. If you do encounter this type of personality, show a little empathy and suggest the positive side of networking. Engage them in uplifting conversations and solutions to their current networking or career dilemmas. Many times, a different perspective can change the minds set of this particular personality type.

Hopefully, these few tips will lead you in the right direction for your networking efforts. Once you have spotted these types of personalities, proceed with caution and make the necessary adjustments to have a successful networking event.