Whom would you choose to make sure your debts are recovered properly? It can get complicated as one debt collection agency can have entirely different means to recover payments from customers. Without a doubt, there many benefits of choosing a debt collection service to help you out. But regardless of your options, the best debt collection service must have certain elements that make it stand out.
- They must have a reputable portfolio with dozens of multinational clients.
- They must have compliance, training and development through process and compliance audit regimes.
- The company must have a good reputation in recovering debts for their clients but it should also consider debtors as part of their Social Responsibility, offering them affordable payment schemes that best suit their financial profile.
- They claim to stick to ethical ways of collection and ensure stability for their clients and ease for the debtors.
What customers want to see in an exceptional debt collection company:
- Effective, ethical and fast recovery of your money.
- Strong and powerful motto that describes their honesty and commitment to work
- List of high-profile clients that speaks volumes about their reputation in this business.
- Innovative schemes and technology to trace debtors
- Stress free process for the debtors that motivates them to repay their dues easily.
- Informative and effectively outlines website that serves as a guide to delinquent customers as well as clients.
- Multiple points of contact, such as phone, email and online support forms
Abacus Credit provides debt collection services using modern technology and experienced professionals. Here are some important factors showing why this company is different.
What a good debt collection service can do
A good credit management company should aim to provide quality and ethical services to preserve the name and reputation of their clients. It should aim to get highest possible return on each dollar, proving instrumental to their client’s financial stability. If a debt collection agency has these attributes, it will be able to collect receivables much quicker than others.:
Locating debtors: Ability to trace most recent contact information about the debtors even if they have left town to avoid repayment.
Demand Letters: Ability to handle demand letters for the debtor and take strategic steps with each out going letter by augmenting aggressiveness in the demand.
Email Support: Ability to send out emails to the debtors in addition to letters to ensure they are notified through all mediums.
Visits: If the telephones or emails do not succeed, they must arrange for visits to directly negotiate with the debtor.
Gathering intelligence: As some debtors can try to hide, a good debt collector helps gather intelligence about them in order to track them.
Legal Actions: They must have a panel of highly experienced lawyers, ready to take legal actions should it become necessary.
Reports: Since client satisfaction is a priority, clients should be updated with progress reports.
Foreign Networks: They should have a strong network of associates all over the world, making collection from foreign based debtors the same as that for locals.
Collecting debt isn’t easy, but it’s not impossible either. You should have a positive frame of mind, energetic and knowledgeable team and a set of qualified attorneys to get the job done.
There is a definite reason why small businesses vanish in just only the first five years of their existence and this reason is the debt collection issue. The proper flow of money is essential for any small business to flourish. If you face a lot of debt collection issues in the starting phase of your business, you will not be able to sustain your business for a long time. One bad debt can either make or break a small business. Therefore proper consideration should be given on how to manage your debts in a proper manner.
There are measures that could be taken in this regard to ignore or minimize the bad debts. These measures are discussed as under.
Payment policy should be defined
It is essential for you to have a proper payment policy before going into the business if you want to minimize the risks involved with bad debts. The customer should be well aware of what he owes to you and when are the deadlines for making the payments.
Dealing with debts in a proper manner
There should be a proper procedure for dealing with the bad debts and everyone in your company should be aware it. There should be a point of contact between you and the customer or the business that owes you the debt and is being late with the payments. The easiest way for you to collect the debt is through negotiations and if that does not work legal action can be taken.
What should be your path?
It is not quite beneficial for your company if you are writing the bad debts off; they will accumulate in big amounts and will dent your business pretty badly. There are paths that you can choose instead of doing such a thing. Choosing a debt collection is the best option for you in this regard. You can discuss your case with the debt collection agency and ask them to assist you in recovering your debt. The most important thing to consider when doing so i.e. hiring a debt collector services for your business, the individual or the business that owes you debt should not have filed a bankruptcy. If bankruptcy has been filed by the debtor than it is impossible for you to collect the dept unless the court decides approves it.
Which debt collection agency to choose
When you make up your mind that you want to go for a collection service to recover delinquent receivables, your choice plays an important role. You should know the reputation of the company whether it is licensed or not, if the company follows all the state and federal laws relating to debt collection. If you choose a company that does not comply with all the above attributes it can create a bad impression for your business.
Although there are a lot of options to choose from when talking about thesedebt collection agencies, a proper research needs to be done when you are choosing one for your business.
With the economy decreasing, it is becoming more challenging for people to keep up with the expenses. Hence, debts are piling up. This is where some unhealthy agents take advantage and you will find debt collectors taking unconventional routes to get money from you.
It’s a fact that debt collector do get the authority to get their money from you at the agreed time. However, there is a limit or collection rights that they should stay well within. You might face debt collectors taking the wrong route in order to get their money from you. Sometimes they can be so aggressive that they charge you money you don’t owe. Making it one out of the many crimes that debt collector are not allowed to do.
Elderly people are the most vulnerable targets to such people and therefore there is a need of establishing some boundaries which no debt collector can cross in any case. In this article, we will highlight some of the most important aspects and situations where a debt collector might be found infringing the limits and hence there can be legal actions taken against them.
Law enforcement agency worker
Debt collectors take the bad route to get their money from the debtors. For that, they may present themselves as a government worker or an agent from the law enforcement agencies. However, no debt collectors are allowed to do so according to the law and therefore, you should not be terrorized if a debt collector threatens you in such a way.
As long as you don’t receive a legal notice from your credit company, you cannot be arrested for not having paid your dues on time. Not debt collector is given the authority to claim that you will be arrested for not paying the dues in time. According to law, the collection agencies do not have the right to issue arrest warrants just on the basis of the fact that you have not paid the dues in time.
Going out to public
It is probably one of the most embarrassing things one can think of. If your debt collector publicly speaks about you not paying your debts in time, it can never be a great feeling for you. This is why the government never allows collection agencies to expose your inability to pay the debts in time. Publicizing your debt also means that they cannot talk to your spouse or your lawyer about your debts.
Debt collection agencies only have the authority to track you by seeking your address and contact number. However, they cannot still expose in public why they are tracking you.
This is probably the most important part of our discussion. Collectors are not allowed to harass in you in a lot of ways, which includes:
- Harassment through violence
- Bad and abusive language
- Frequent phone calls
- Calls before 8 in the morning and after 9 in the evening.
If you have reserved the rights, it will give you a lot of power when you are dealing with your debt collector so there is no need to get scared of any threats that you may receive from them.
The use of credit card is a talked about subject. People are always cautious of their expenses with their credit cards to get a higher credit score and lower interest rates for the future. The reason people choose credit card is pretty simple, it gives them a lot of convenience as they can pay the amount at the end of every month.
If you are wondering what mortgage applications have to do with credit cards, we should tell you that your mortgage applications have quite a link to your credit card usage and this is just what we will discuss in this article today.
Just like debt collectors in Singapore, mortgage lenders also look for your credit history to approve your application. If you have a high credit score then just like you get lower interest rates, you may also have better chances of getting your mortgage application approved.
Lenders also look at the time you take in paying for your credit cards. Timing is very essential with mortgage payments because if you’re as late as just one day, there can be consequences that you will have to bear. If you pay your credit bills on time, your credit score will improve and hence you chances of a successful application. Be smart and wise in managing your credit cards.
Difference on loan types
Credit Cards are unsecured loans. One may have to pay more if they delay the payments but there is no strictness due to the fact that there is no loan security. However, mortgage loans are secured loans firstly because they are generally larger amounts and secondly, it keeps the borrower dedicated to pay the dues on time or else the property may be setup for auction after a foreclosure notice from the bank.
Despite of being a major difference in the loan type, lenders always take into account how you react if you have more loans to pay. They check how dedicated the borrower is when it comes to paying secured loans in comparison to unsecured loans. We recommend you should always clear your unsecured payments and not just pay to increase your credit score.
Don’t want a credit card?
You might be wondering that since it could be a tough job getting your application approved with a credit card so why not avoid a credit card. Well, it doesn’t go in your favor either. If you haven’t had a credit card before, the lender will not be able to judge how punctual you might be with your bill payments. Hence having a credit card and a good credit score is vital for your cause. If your sole reason for not having a credit card is the above, read a post that we have shared on debt management tips.
The final verdict
To cut the discussion short, the relation between your credit card and mortgage application is your credit score. Debt collectors and mortgage lenders are very particular about your bill payments so we leave you with some tips and tricks that will help you improve your credit score which will in turn be helpful to let you succeed with your mortgage application.
- Be honest with your credit history in front of your mortgage lender.
- Be punctual with your credit card payments.
- Always spend less than 30% of your credit limit.
- Pay out any outstanding due before submitting the mortgage application.
When you go for a credit card, you are normally surrounded with several questions. “How much I should spend?”, “What if I exceed the limit” and many more. You may even start doubting yourself whether you really need a credit card or not. One of the things that most commonly goes through a person’s mind is credit score.
A healthy credit score is a guarantee that you can continue with your credit card. You can even apply for further credit when needed. However, it is not always easy to maintain a good credit score if you ‘listen to your heart’ rather than your brain. Debt collectors in Singapore and finance personnel are not really good with feelings so it won’t save you if you exceed the limit.
A credit score is a three digit number that tells your progress with your credit card. The value lies between 300 and 850, the higher it is, the better your credit score.
Summary of Credit Scores
To know exactly where you stand with a certain credit score, we have compiled for you a summary of how credit scores usually work.
If you score between 300 and 580, you are seriously low on your credit scores. You may not be granted further credit and even if granted, the interest rates are going to be too high. If you rank above this range and under 650, you will be granted credit but at high interest rates.
Scoring above between 650 and 710 will allow you to attain credit at moderate rates. The closer you get to the highest possible score, the lower interest rates become. Scoring anywhere above 751 will guarantee the lowest possible interest rates in the market so you may want to end up in this region.
Earning a Good Credit Score
Earning higher scores is not too difficult a job. However, it does require patience and you have to be careful while you spend. Here, we leave you with a couple of easy tips that will help you raise the credit score so that you enjoy the perks of keeping a credit card.
Stay within your limits
There are many credit management tips and here is one of them. Stay within the limits and things will be good. When dealing with credit cards, it is even more important that you check where you stand with your expenses during a month. If you exceed your credit limits, it goes negatively against you and your credit score will drop. However, if you spend less than 30% of your credit card limit, you will get a positive score for your credit card.
Make due Payments
Paying your dues at the right time is a healthy habit that will uplift your credit score quite a bit. If you are lazy and tend to forget things, it is better that you note down the payment due date of the credit card.
Economic crisis and financial setbacks have led people to lower trust in their banks and finance companies. There are more people complaining about customer services, interest rates and credit card fees. Companies have to take other options for debt recovery Singapore from their customers if they were unable to pay their dues on time. However, there is always a ray of hope everywhere.
Managing a credit card can be quite a challenge. Having to pay interest after exceeding the limit and several other problems is very painful at times and therefore many people avoid using credit cards. Some of them gave up using credit cards to get rid of such troubles.
However if you still own a credit card and want to continue with it without much of a hassle, we have the right solutions for you. In this article, we bring to you some smart techniques, tips and trick that will help you use your credit card with efficiency, hence making our debt management easier.
Stay within 30% of your limit
You can spend as much as you like from your credit card. Just remember that once you exceed the limit, not only do you have to pay additional interest but it also lowers your credit score. To get a good positive credit score and keep yourself from paying additional charges, it is best to stay within 30% of your credit limit.
If you don’t pay your credit card payment on time even once or twice, it goes against you and affect your credit score negatively. To avoid this situation, you should setup auto-pay for your credit card payments. Your payments will be made automatically so that you never fall short of time while paying for your credit card.
Pay all your balance on time
If you pay your dues on time, it will affect your score positively. Also it will keep you from paying additional interest and other such charges. If you pay more than the minimum amount for each month, it will also reduce extra interest charges.
Opt for one credit card only
Having a single credit card means having just one bill. It keeps you from worrying about different bills and interests that you might have to pay when you keep more than one credit cards. Especially if you haven’t used credit cards before, it is best to keep yourself limited to one credit card.
Go through terms and conditions
Different companies and banks have different policies. Make sure you go through all the fine details while signing up for a credit card. Go through the small font bullet points to ensure nothing is missed. It will keep you from troubles so that the bank doesn’t take your house for debt recovery in future.
Look for rewards and points
Credit card companies offer rewards such as cashback, air miles and grocery discounts etc. Make sure that you make the most of such bounties and rewards. Use your credit card wisely, score positively on the credit score and things will be great.
Availing a debt management program may not indicate to the best of financial conditions one may have. However, it is better to avail a debt management program from a suitable debt collector Singapore. It can keep you from facing the worse. On one hand where debt management plans can be relieving, they can also be quite expensive as debt management plans don’t come for free. In some cases they are even fraudulent.
Here are a few things you should consider before you take up a debt management program. These steps can act as a guide for you.
Before taking up any debt management program, every debtor has the right to a credit counseling session where they can learn about managing their debts. It is quite comprehensive and many believe that this session alone can help debtors set themselves free from debts. Understandably, it is kept hidden and secretive by debt management companies.
Instead of giving the control to someone else, do it yourself. If you can manage your own debts, there is nothing better that can happen for you. Keep a check on your expenses and try reducing them down as much as possible. You might also want to ask the creditors to cut off the late fee in case you can’t pay the debt on time.
Advantages and disadvantages of a debt management plan
A debt management plan doesn’t come for free. The companies charge you for the services. There is just another addition to your expenses. It could be costly for you in the longer run so you should reconsider your thoughts about going for a debt management plan.
One major advantage of a debt management plan is that some creditors do not directly give debts so the debt management companies can act as a bridge to help you get the credit from them.
Look for a good credit counselor
Finding a good credit counselor is not all that difficult. There are numerous credit agencies out there who offer good packages so that you can get rid of your debts in the most effective way possible. You should research well about your desired company before opting for their plan. A good creditor counselor will explain its pros and cons of getting into a debt and the standard procedures done and the rights of the debt collectors when in their collection service.
Authenticity and Legality
Hire a licensed and authorized company. It will save you from a lot of worries which you might not be able to see at present. It gives you a reason to trust the company because a reputed company would never involve in fraud and scamming. For getting an insight to the company’s operations, here is what you should do:
- Search how the company performs its operations. Which other companies it deals with and what type of clients does it have.
- Ensure that the company asks for our complete account details.
The relation between you and your debt collector is quite important so you should make all the necessary arrangements before hand to avoid any consequences in future.