Debt collectors have a challenging job because they depend on collecting money from people who might be actively avoiding their debts. The complexity of this job requires them to employ various methods to be able to collect effectively.
Understanding a few different types of debtors whom they might come across may help debt collectors to enjoy more favorable results.
The assertive non-payer
This type of debtor makes bold assertions about their ability to pay but fails to follow through. They may promise imminent payment or agree to payment plans with no intention of adhering to them. The assertive non-payer often engages in this behavior as a stalling tactic, hoping to delay action from the creditor while possibly not facing the financial hardship they claim.
The evader
Evaders actively hide from their financial responsibilities, often by ignoring communication attempts or physically relocating without notifying creditors. They might change phone numbers, email addresses and even jobs to avoid detection. This behavior suggests a deliberate choice to escape the debt rather than an inability to pay. Tracing and legal actions are often necessary to confront evaders, as can using social media to try to locate the debtor and collect.
The battler
Battlers are debtors who fight the legitimacy of the debt, disputing its existence, the amount owed or the creditor’s right to collect. This challenge can stem from genuine confusion or disagreement over the debt terms, but it can also be a defensive strategy to avoid payment.
The misstater
Misstaters inaccurately claim financial hardship to avoid settling their debts. Unlike those genuinely unable to pay, misstaters have the means but choose to misrepresent their financial situation. They may provide false information about their income, assets or expenses.
The willing but challenged debtor
This debtor genuinely wants to clear their debts but faces legitimate financial difficulties preventing them from doing so. They are typically open to communication and willing to negotiate payment plans that fit their current financial situation.
Understanding these debtor profiles can help to enable debt collectors to tailor their approaches, improving the chances of successful debt recovery. Each type requires a different strategy, ranging from assertive legal actions to empathetic negotiation, underscoring the importance of adeptness and versatility in the debt collection field.