Are creditors at your door? Tips for keeping them at bay

On the Money From the  June 14, 2002 print edition During trying economic times, companies and individuals can often find themselves with more debt than can be comfortably handled. In turnaround situations, the income stream of a company can fall below the required payments on its debt. For individuals, this usually means they can’t make their minimum payments on credit cards. In financial circles, monthly payments are called debt service. When debt isn’t serviced, creditors are naturally less than thrilled. If the debt goes unserviced for too long, you will no doubt have the opportunity to make new friends who work in the collection industry. Here are some tips, insights and suggestions for successfully handling creditors and collectors. Don’t take it personally. It will help you to remember that a collection call, no matter how unpleasant, is a business transaction. Not an assault on your personal character. However, it is a frequent practice for collectors to attempt to intimidate and scare you. Remember that many collectors are paid based upon what they...

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