3 Tips for Debt Collectors


Debt collecting is a business and an occupation. There are plenty of people out there who need financial help and support that is not being given to them by the more familiar financial institutions such as banks. This is due to them being unable to provide collateral to secure a loan and because they do not possess enough of a proven credit rating to qualify for a conventional loan.

3 Tips for Debt Collectors

Instead, they will seek finance from other sectors of the financial industry that will allow them to borrow. This is where debt collectors come in. This situation creates a higher chance of money not being repaid and therefore having to be collected by face-to-face visits from those working on behalf of the company or individual who has loaned the money.

So, this article will look at some tips that debt collectors can use to help recover the money that is owed from the clients of financial providers, and will also discuss innovative debt collection techniques such as nibbling.


Just to explain briefly what nibbling is, because the above link will explain it more fully, it is about a debt collector asking for smaller amounts to be repaid over a gradual period in the hope that this way the full amount of the debt will eventually be recovered. It can represent a more cost-effective way of recovering the money than going through the court systems and only ending up with small amounts being repaid over a long period anyway. The term, which refers to the strategy of gradually obtaining a little to end up with a lot, can be applied to other business situations, too.

To Warn or Not to Warn

It is a point in question as to whether it is better to warn a client that someone will be coming around at a certain date and time to collect money that is owed or not. On the one hand, it can ensure that someone is in so that the debt collector’s time is not being wasted, but on the other hand, it can mean that someone owing money will deliberately make sure that they are out to not have to make the repayment on time or at all. There is nothing like a face-to-face visit to reinforce the urgency with regards to when outstanding debts should be settled. No financial institution will willingly be prepared to let the matter drop and lose their money, which is why they enlist the services of debt collectors to work on their behalf. They have specialist knowledge of how to successfully collect monies owed . Certain powers are afforded to debt collectors. They have the law on their side in the event of continued non-payment.

Communication Skills

The best debt collectors have good communication skills which are learned from the experience of handling different types of clients. Some of whom are more cooperative than others. Skills of persuasion, for instance, come in handy. 

Some good techniques that debt collectors employ are to first establish trust and develop credibility, before then appearing to show empathy with a borrower’s situation even if their own patience is wearing thin. A debt collector should also possess a knowledge of body language and what it means. Furthermore, a debt collector should consider their tone of speech as well as what is said. The use of rhetorical statements on their part will reduce the chances of excuses being made to them, and the use of repeated phrases can help to make sure that everything is fully understood and remembered by a client in terms of what is expected of them.

So, some useful techniques and considerations for a debt collector who has been assigned the task of collecting money that might have been owed for some time, or at least is overdue.