Debt Collection — An Introduction to Arbitration and Litigation
The key to an effective debt management strategy is work out exactly how much you owe and create a plan to clear that debt. Well sort of. Getting into debt is simple — e.g. by spending slightly more than you earn each month. So the obvious solution to your debt mountain would be to spend slightly less than you earn each month.
How much do I owe?
Sit down with a piece of paper and write down every single debt you have to pay, don’t forget less obvious debts like council rates to be collected by Australia council debt collector. Yes — you do have to open those statements you have been ignoring. Separate personal loans from credit card debt. With your credit card debt, note the outstanding balance, interest rate and minimum payment. Do the same for personal loans except, instead of minimum repayment you will have your contractual monthly repayment. If you have any other outstanding debts e.g. council tax arrears etc. include this in your calculations.
Add them all up. It is important at this point to realize that no matter the size of your debt — there is a solution.
Debt Collection Activities, continued
For business owners in Australia, the four most effective and common types of debt collection activities, especially for council rates debts are personal contact from an nsw debt collector to negotiate payment, the demand letter, and litigation. The value of these processes varies in every case, but the explanations of each one are explained below.
Personal contact to negotiate payment
This is a similar procedure to mediation, and the final outcome is not binding upon both parties so ongoing contact is often required to ensure payment is made. Personal contact to negotiate payment
will resolve the conflict faster than litigation and take into account a business’ or debtors legal woes in a quicker manner. In every case, this process will also be less expensive to both parties than legal action would otherwise be.
The lengthiest and most involved option in collecting debt owed to you or your business would be to go to legal action. This is the common process of moving a lawsuit though the count system in order to resolve the local government debt collection dispute. This is likely the first action many businesses think of, and consists of a suit being filed against the debtor in an attempt to recover the money that the company is owed. In this scenario, both the debtor and the business hire legal counsel and move a case through the courts until the debt is paid by the debtor or taken from monies owed to the debtor by other parties, from sale of the debtor’s property etc.
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