How to go about collecting debt
When you are owed money, going to the courts is always seen as an absolute last measure. It's costly, expensive, and is not always guaranteed to work. It can be much more trouble than it's worth. But then what do you do? How do you get past that sickening feeling that someone simply is not going to pay up, and get the money you are rightly owed?
Speaking directly with the person who owes money is often all it takes. Many people bank on the fact that you just don't want to face them, or are too nervous to. They would easily ignore a letter, but a direct conversation is enough to bring them into line. However there are risks in speaking in person. Often arguments can result, and you may end up getting dragged into conversations that trick you into saying something that could be used against you, making the situation worse. This is when it helps to simply draft a simply letter stating the situation, and sometimes threatening legal action is all it takes.
Hiring a solicitor to write that letter for you is a more expensive step to take, but it can often bring in more of a result, and in the process, you've spoken with a solicitor and been made aware of where you stand legally and other steps you can take.
Another less expensive option is using a mediator. For a smaller fee, a mediator will listen to both sides of the situation and try to come to a resolution. It is important to know that if you do end up in court, they will have expected you to have tried using a mediator first.
Another avenue to go down is to use a debt collection company. These companies are appealing as they simply "take over" and allow you to leave the issue in their hands and they do the hard work of hiring a solicitor and going through the process. They do take a percentage of the collected money, but some businesses find it worth it as it gets the job done.
Speaking directly with the person who owes money is often all it takes. Many people bank on the fact that you just don't want to face them, or are too nervous to. They would easily ignore a letter, but a direct conversation is enough to bring them into line. However there are risks in speaking in person. Often arguments can result, and you may end up getting dragged into conversations that trick you into saying something that could be used against you, making the situation worse. This is when it helps to simply draft a simply letter stating the situation, and sometimes threatening legal action is all it takes.
Hiring a solicitor to write that letter for you is a more expensive step to take, but it can often bring in more of a result, and in the process, you've spoken with a solicitor and been made aware of where you stand legally and other steps you can take.
Another less expensive option is using a mediator. For a smaller fee, a mediator will listen to both sides of the situation and try to come to a resolution. It is important to know that if you do end up in court, they will have expected you to have tried using a mediator first.
Another avenue to go down is to use a debt collection company. These companies are appealing as they simply "take over" and allow you to leave the issue in their hands and they do the hard work of hiring a solicitor and going through the process. They do take a percentage of the collected money, but some businesses find it worth it as it gets the job done.
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