How to Make Debtors Pay Their Credit Card Debt

Collecting money from debtors is more difficult during difficult financial times. As a result, credit card interest rates are going up and the ones paying their bills are suffering. The debtors are also incurring late charges, overlimit fees and other penalties that are only increasing the amount they owe. It's not always easy to make debtors pay their credit card debt, but it is possible.

Difficulty: Moderate

Instructions

1. Wait a while before you try to collect. Sometimes debtors may just be late on paying their credit card debt or it slipped their mind. A friendly reminder could help in those cases, but once you start bugging them about paying their debt, your relationship changes. It is no longer an amicable business relationship. It turns into an adversarial one and the debtor may start doing things to avoid you. Sit back for 60 or 90 days and see if they are going to pay you before taking further action.

2. Make a firm demand for payment. If you have determined the debtor decided not to pay their credit card debt, it is time to demand payment. Make it clear that the debtor owes the money and give them the option of either paying the amount they owe right away or ask for a payment plan.

3. Become the debtor's priority. If you have ever heard the adage "The squeaky wheel gets the grease," use this concept when trying to collect the debt. Begin calling the debtor and sending him letters reminding him of his contractual obligation to pay his debts. The more you bother him, the higher you become on his list of financial priorities because he will want you to stop bothering him.

4. Take legal action. Most debtors will pay their credit card debt before the situation gets into court. However, the fear of taking them to court and garnishing their wages or placing a lien on their property is enough to make them pay immediately.

Tips & Warnings

• Be serious about your threats. If you threaten to take the debtor to court, follow through with it if he does not pay.
• Although you should contact a debtor often about paying his credit card debt, some laws prohibit certain actions. This includes calling more than a certain number of times each day, what times you can call and who you can talk to about the debt. See the Fair Debt Collection Practices Act (listed below) for more information on contacting a debtor legally. Do not make threats that you are not legally permitted to carry out. In some instances, the debtor can make a complaint if this happens and the debt could get diminished or even erased.

References

• The Fair Debt Collection Practices Act
• Collecting debts according to the law

Resources

• When debt collection goes too far