Creating a Written Debt Collection Policy Part 1 of 3

The debt collection process, especially when you need to involve a debt collection attorney, is greatly streamlined when our clients have a clear Debt Collection Policy.

We offer here some guidelines to help you to create your own debt collection policy manual.


Policies are in place to improve clarity and limit confusion. This means that debt collection policies can be an effective tool that holds value. Collecting a debt is not something that is done in uniform fashion, which means that a written policy has the ability to remove subjectivity. All credit decisions that are made will be based on policy that has been thought out and approved by all parties involved. This makes the job of a debt collection attorney in Florida much easier. Policy simply allows for protocol to be followed and gives guidelines.

Why a Written Policy is Best

A written policy is the only way for debt collection procedure to stay structured and not change over time. This means that continuity will stay in place no matter what happens within your business structure. This is due to the fact that staff will change, but procedure will remain unaffected. Now all decisions in reference to debt will be consistent and fair, because no biases will be used during the decision making process. Collecting a debt should be a uniform procedure that does not vary greatly. All customers being treated equally in relation to debt is the ideal outcome that a written policy helps to achieve.

Up To Date Policies Are Most Effective

When it comes to a written policy on debt collection, it is important for updates to occur regularly. The way that debt is collected changes over time slightly, so policy will not stay exactly the same forever. Minor changes that are made regularly will allow for the most effective debt collection results. It is also important to keep all employees up to date on all changes to procedure to ensure that all parties are on the same page. This will limit confusion and possible mistakes.
What Should a Written Policy Contain?
The type of information that should be included in your debt collection policy varies, but there are a few guidelines to follow. You should make it clear the type of credit application that is required and if a personal guarantee is applicable. It should also include information regarding financial statements and if these are a requirement. The terms of sale and extended dating procedures should also be outlined to remove any confusion that may exist in reference to these topics. A written policy is the best way to make sure that debt collection is most effective.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your 60's

Now it starts.  The Golden Years.  These are the years you worked for.  Your kids are off and totally self sufficient.  You have some financial security because you kept up the discipline of saving.  All the experience of the years behind you are now leveraged with some choices about working or not, and leisure time.   You may still have another 20 to 30 years ahead to rely on your savings.. this is not the time to sit back and rest on your laurels.

Cautions

1. Be aware of overspending in early retirement, budget with caution.
2. Swear off credit cards and any new debt.
3. This is not the last chapter, its the first chapter in a new book, that's a continuation of a series you have really enjoyed.  There's still lots of opportunity to grow your wealth, lots of need to continue to exercise discipline, and lots of time to enjoy the rewards of a life well spent.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your 50's

Typically, people tend to hit their stride in their 50's.  The mad dash to the top has leveled out.  The youthful exuberance in spending has been tempered.  The kids have started to move on with their lives.  This is a time when temptations run high to give yourself those "luxuries" that were forsaken for the kids ballet lessons,  the minivan, and summer camps.   Too often, couples falter just short of the finish line during this time.  All the discipline that got you to where you are gets relaxed.  Keep focussed, your retirement years are just barely ahead of you.  You will need those savings.

Cautions

1. Don't quit prematurely, your savings need to cary you through your retirement for another 2 or 3 decades.
2. If you decide to branch out on your own, entrepreneurial style, this tends to be safe years to do it in with the experience and knowledge you have gained, but be sure to have a safety net, at least a year of living expenses and lots of insurance.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your Forties

Your forties tend to be very difficult years, filled with large expense "spikes" as the kids grow into teenagers, and prepare for college.   Expense spikes tend to unfortunately be funded with credit cards and lines of credit tied to houses.  Balances are often not paid off, to make room for the additional payments that this borrowing pattern creates.

Cautions

1. Buy a smaller house to reduce not only your mortgage, but utilities and the cost of maintaining the home.  Keep your real estate budget to not more than 3 times your annual salary.
2. Use salary increases for savings.  Last year you made it, if you got a 3% raise, bank it, invest it, continue to live at last years standard of living because there's going to be a lot of unexpected expenses demanding attention from that savings pot you have been building.
3. Insurance is critical, make sure you have enough insurance to cover the holes in the financial bucket caused by unexpected illness, and death in the family.  

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your 30's

Thirties.. usually the 3 big M - "Marriage" "Mini You's" "Mortgage"

The typical wedding,  starts at $25,000 - WOW.

For middle America, each child will cost a whopping  $241,080 for their first 18 years - NOT including collect  (U.S. Department of Agriculture).

These years mark the first of the "all grown up" expenses, and can be extremely expensive.  They tend to also be marked by rapidly growing income, which breeds a tendency towards spending beyond your means.

Cautions.

1. Listen to advise from loan advisors so that you focus not only on today's expenses, but the real long term expenses of your mortgage.
2. No matter how tempting, try to be conservative about your wedding expenses, its about your life together, not paying for one day for the rest of your life.
3. Keep saving, remember those good habits from your 20's, now you are starting to earn good money, that discipline is going to start really paying off.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your Finances in your 20's

For most, an exciting decade.   You are probably working and making real money for the first time in your life  You have money, but likely not responsibility.  There's money in your pockets, but not a life experience of the discipline on how to manage it.

Your biggest expense, if you went, is college.  Congratulations in addition to your first money, the first debt is now pressing down.

In all likelihood.. there's a shiny set of wheels, better known as your first car.

Finance Cautions

Watch out for student loans.  These are debts you will cary for ever, not usually dischargeable even in bankruptcy.  Do all you can to save money on college expenses, explore every scholarship, shop interest rates.  Keep a part time job, live off campus, whatever it takes.   Many leave college with 8 figure debt, in an uncertain job market.

Start good habits early.  Start now when your obligations and responsibilities are small to put 15% of your income into some form of savings or investment.  This is a habbit that can follow you for life.  Starting saving early, and relyling on compounding interest can make you wealthy, regardless of your career path.

Go easy on your first car - the new cars can loose 20% and more in value the day you drive them off the lot.

There will be companies working very hard to get you to sign up for credit.  They want you to sign up because you will end up indebted to them for life.  Resist the urge to splurge.  Shop your credit for low interest rates and fees.  Now is not the time to play now, and pay later, because you have a lot of later left, and interest fees will continue to grow.

Debt Management and Spending through the generations - Part 1

As debt collection attorneys in Florida, its out job to make sure that when a business or individual owes our clients money, it gets paid.

We see many people in harsh financial circumstances that could have been avoided with some advanced planning.

We ran into a great article that discusses spending  and age and things to look out for at various times of our lives, and would like to share that with you.

http://gulfnews.com/gn-focus/personal-loans/spending-tracker-map-your-financial-footprint-1.1314952

The article suggest that first, we get control of what our financial house looks like.

Journal 2 months of spending - and break the spending into sections like food, entertainment, housing, etc.

• Create a list of fixed bills  - things like power, water, rent or mortgage
• Compare the two lists and determine if your spending habits, match your expense requirements.

• Create an emergency fund equal to 3 to 6 months of expenses to help you through unexpected events.  Most Americans can't survive a 2 week interruption in income, every step you take towards 3 to 6 months puts you ahead of the crowd.
• Your loans should be no more than a third of your income.
• If you are of child bearing years, make sure your insurance includes maternity.
• Don't be afraid of personal loans to help you buy assets the will increase in value, like a home.
• They suggest debt stacking, make bare minimum payments on all your credit cards, except one - the smallest one.   Pay the smallest one off with as large of payments as you can.  Then go down the stack with the money you saved by paying off the first, tackle the next.