The importance of effective communication in debt collection

Brennan & Clark has a remarkable track record in business debt collections. This is due to factors such as well-trained collections agents and tried-and-tested methods of collecting. Another crucial part of its success in collecting business debts is communications.

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In debt collections, there is a proper way to communicate with the people and businesses who owe money. Communication is governed by rules and regulations such as those found in the Fair Debt Collection Practices Act. It is the Federal Trade Commission’s responsibility to implement these guidelines.

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The standards for communication are quite clear, as are the procedures to follow when reaching out to debtors. While Brennan & Clark have gone through many of the fine points regarding the instructions and standards used in debt collections in past blogs, the agency continues to reiterate why these instructions and standards should be followed.

The main reason following the guidelines is paramount is, so debt collectors don’t overstep their bounds. In doing so, collectors steer clear of any legal action from the debtor and are still free to continue collecting debt for their clients. If one goes through the many guidelines of debt collections, they’ll notice that most of the items pertain to the rights of the debtor, Brennan & Clark notes.

Brennan & Clark is a business collections agency providing customized receivables support solutions that help businesses eliminate credit losses. Click here for more information on the company and its services.

Paying Off Medical Debt: On The Road to Health and Financial Recovery

Anyone who's been in debt knows how this difficult situation can take a toll on one's health because of the worry it can cause a person. And yet sadly, when it comes to racking up considerable debt, having to go to the hospital is one of the leading perpetrators. But before one allows the misery of debt get in the way of making a full recovery, it's worth looking at these tips for managing and paying of medical bills.

  

1)Take care of bills as soon as possible. Naturally, the best way to avoid going into serious debt is to take care of bills right away, especially as ignoring these can put a dent on one's credit score. Besides, it might be possible to bargain with the healthcare provider if done before the bill heads to the collections department.  

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2)Negotiate with the hospital. As mentioned earlier, it's quite possible to bargain with the hospital. Not too many people think to do so but approaching one's medical provider to negotiate for lower rates on medical procedures can be worth the effort. Some options to consider are asking for discounts, recommending an installment plan, or offering a down payment for a reduction on the bill.  

3)Understand the bill thoroughly. Considering the amount of items contained in a medical bill, it's not impossible that there may be overcharges tacked on to the bill so it's best to read each item closely to know if there are duplicates or charges that shouldn't be in the invoice.

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Understandably, there may be some item or procedure codes that patients might not easily comprehend. Don't be afraid to ask about these even if it means going through the entire bill.   

4)Look into assistance – financial or otherwise. There are many avenues for getting financial aid to pay for one's medical bills. Low-income individuals may qualify for Medicaid or assistance programs from the local government; similarly, there are state- and local-level insurance plans for children from lower income families. Nonprofits and even the hospital itself may also have programs that help reduce or completely pay off bills, but due diligence on the part of individual or family may be necessary as there aren't always advertised.

Meanwhile, credit counselors, medical billing advocates, and support groups can also provide invaluable help in managing and organizing debt repayment, finding information regarding financial aid, as well as resolving billing disputes.  

5)Think about filing for bankruptcy. A CNBC.com article reported that being unable to manage medical bills is the biggest reason for bankruptcy in the country. It can be a last ditch strategy as while filing for Chapter 7 bankruptcy can afford one a "clean slate," it can also mean a lower credit score. Besides which, not everyone is eligible for Chapter 7 bankruptcy, so it's best to weigh one's options and consult with an expert choosing this step.

For more on ideas on how to manage and pay off debt, subscribe to this Brennan & Clark blog.

Climbing Out From the Depths of Being in Debt

Being in debt is an already-difficult situation that may also lead to issues like emotional distress and bad health, particularly when one worries about it constantly. So it's always in a person's best interest be on top of one's finances, although admittedly, sometimes taking loans and using credit can't be avoided. Fortunately, those who find themselves in debt don't have to stay there. Here are some tips for freeing one's self from debt:

Consciously resolve to get out of debt and follow through
Getting out of debt isn't easy; it requires commitment, discipline and lifestyle changes. Controlling one's spending is crucial to success. Avoid buying things on credit and pay with cash, and focus on paying off the debt before making any big purchases. Determining a realistic budget and sticking to it is useful too.

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Make a plan for payment
Faulty financial planning might have led to being so deep in debt, but this isn't irreversible. Making a record of what one owes and keeping track of one's cash flow and monthly expenses will enable one to make a plan for paying off the debt. Creating a schedule that shows when one's paycheck comes in, when bills are due, and what expenses are required is great way to see the bigger picture about when the debt could and should be paid off. With this, one may even determine whether it's necessary to earn extra income to accomplish the debt-clearing goal in a more timely manner.  

Keep an emergency fund in the bank
This is a good habit people should have even if they weren't in debt. Many people turn to their credit cards when they need to pay for something in a pinch. Having some money stowed away for unforeseen circumstances means one doesn't have to rely on a credit card so much.

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If it still seems daunting, seek help
Credit counselors like the National Foundation for Credit Counseling generally provide free counseling services where they can help people learn how to manage money and reduce their debt. They may also offer further assistance for debt restructuring and repayment where they negotiate with creditors to accept smaller payments or lower the interest on the debt. Getting out of debt may not be any easy road, but committing to the goal and following the recommendations above may get one closer to achieving freedom from these financial woes. Keep in mind, however, that even when one is in debt, it's still important to be treated according to one's rights, which are explained on credit.com.  

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