The Necessity of Bad Debt Management

Unwelcome as tax collectors, employees of any bill collection agency know that they provide a vital service. However much bad debt the average company must write off each year, the number would be vastly increased if it were not for the efforts of bill collectors who engage with customers who are past due on their accounts. Feared though they are, most debt collection companies are happy for the chance to work with anyone making an honest effort to pay their bills.

The phrase bad debt management is a phrase that is important for the debtor as well as the creditor, and the collection agency stands between these two parties trying to recover some fraction of the creditor’s lost revenue. People on the receiving end of the collection agencies efforts have two choices. They can treat the bill collector as an adversary, or they can resolve to make some effort towards paying their bills. In the latter case everyone is better off, since trying to ignore your debts is only escalating a conflict that you can’t win.

The agencies responsible for bad debt recovery have the time, resources and patience to win any battle you undertake with them, so it’s wisest to come to terms with them sooner rather than later. Plus, under most circumstances they only expect to recover part of the debt anyway. And as you begin to shrink the burden debt you carry, the world will seem less hostile, and you will find it easier to acquire credit.