Get Your Money Back: Effective Strategies for Collecting Unpaid Debts

Not being paid what you’re owed is frustrating. You’ve provided a service or lent money, and you’re simply not getting your money back, and you are the one with unpaid debts now.

Knowing what to do in this situation is tricky. You know you need to resolve the situation to keep your finances in good order. But you also want to avoid overstepping the market or creating antagonism that further worsens the problem. 

Fortunately, this post is here to help. We run through some tactics you can use to get someone to pay you back what they owe, whether personally or through your business. 

Look For An Amicable Resolution

The first step is to seek an amicable resolution. Often, customers and friends simply forget they owe you money. 

Call them on the phone and remind them that they owe you money. Try to find out what information they have and what they believe the situation is. 

Most of the time, they will promise to pay immediately. Other times, they will tell you why they haven’t paid (and you can use that information to determine your next step). 

Offer Options

If you get rebuffed, provide them with options. Tell them what they can do if they are struggling financially. 

For example, you could stop working for them and set up a payment plan. This way, they can pay in installments over the coming months once their finances improve. 

Send A Demand Letter

You’ll want to start sending demand letters if that doesn’t work. These are critical for creating legal records you can later use if you go to court. 

The first demand letter should be polite and addressed to decision-makers. You want it to reach someone who can make a real difference in what happens. 

The following letters should spell out what you’ll do if you don’t get paid. If you don’t want to write the demand yourself, you can get templates online that do it for you. 

Look For Mediation

At the same time, it’s worth seeking credit corp solutions that offer mediation. These services can liaise with the other party and learn more about the non-payment in non-threatening ways. Then, they can report back to you about what they’ve learned and how they think you should proceed. 

Sometimes, you can use these services to come to a compromise with the other party. Working with them reduces friction and prevents you from having to confront debtors directly. 

Go To Small Claims Court

If you still can’t get the payment owed to you, go to claims court. Judges and other legal professionals can determine what money is owed and what you need to do to pay it back. 

Going to claims court is a long and lengthy process, and it’s easy to get it wrong. Therefore, it always makes sense to go with a successful lawyer who can understand your case and present it to the people there. 
Don’t follow a specific course of action just because you think you have to. If you believe there’s a way to get your money back, choose that route instead.

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