It usually takes one or two conversations to understand the ways that debtors react to being chased. It is important to not only understand the likely reactions moving forward, but more so the heart of the debtor behind each action.
This series will focus on the “why” behind the ways debtors react to being chased for payment.
The most common reason.
9 of 10 debts submitted by clients are for principle’s sake. You are here likely because you feel wronged or cheated. You want to make sure your debtor doesn’t get away with it and do it again to some other poor soul. It makes sense then that many non-payers feel the same way.
Depending on the personality type, we expect many different approaches from the debtor. We may see stubbornness, high emotions, excuses, lack of clarity or genuine effort to relay their side of the story. All of this is okay – we get it – things happen, life gets in the way and bad things happen. It is reasonable that this one of the ways that debtors react considering many of the circumstances a debtor may be in.
When we look into the heart of the debtor, the solution presents itself. Why does someone refuse to pay because of feelings over facts?
The heart of it all.
This is either not their first rodeo or it’s not the first time they have felt under attack. We all go through troubles whether it be emotionally, relationally, financially, mentally, physically… life is tough. The debtor has chosen to stop feeling powerless or taken advantage of. Taking the situation into their own hands, their feelings will stop any resolution.
The debtor has put up walls between both parties whether you did something wrong or not.
Making payment, making amends.
It seems simple to resolve these situations – hear the debtor out, de-escalate and explain the facts. The problem is the wall that is now between both parties which I mentioned in the above paragraph. That’s where we come in.
As a third party, the debtor does not have any principle arguments against us. They often feel able to speak with us and find a resolution despite past confrontation with our clients.
Practically speaking, this may look like a conversation with the debtor, reviewing of facts, explaining facts to debtor while also understanding why they feel the way they feel. From here, reason usually takes over and payment is made.
It’s not always that easy.
Debtors can put walls up in front of us as well, we then look to break them down. Keeping ethical and empathetic to the other side’s situation, we escalate the matter through our in-house action. This includes damages to credit scores and other similar actions.
For the debtor, they will be well aware of each step as we move forward. We will contact them at each stage, imploring that they review their stance and see the implications their stubbornness is causing. These debtors are coaxed to make payment to avoid court and other legal escalation.
Summary.
There are many specific character traits and reasons that flow from principle based debtors. Over the next few months, we will delve into these and the ways debtors react to being chased such as financial hardship, serial debtors, evaders, talkers, promisers, fighters and more.
If this resonates with you and a specific situation, I would love to chat with you to see what we can do in your specific situation. You can always call on 0428 085 826 or email info@creditormate.com.au
If you are a debtor reading this, I hope it explains not only why you may feel this way, but also the heart of this business – to resolve matters ethically, reliably and relationally.