Credit help service

Credit addiction is very similar to drug or alcohol addiction, and the consequences are just as devastating to yourself and to your family. The decision to wean yourself off of your credit card addiction is not impossible, and can be much more pleasurable without the physical withdrawal experienced like other addictions. In fact, you will soon feel free of a heavy burden, making your life easier and more enjoyable.

In many places around the world credit serves a purpose. It can be a blessing in situations where you are faced with a problem and only money will solve it — money that you do not have at that moment. Originally, that is what credit was about. It was a sort of loan upfront so that a person could acquire the necessary service or item that they needed to make their business run smoother or their home life easier. But credit has become a source of stress and hardship for people that have used it for purposes other than necessity.

Credit is a privilege and not a right. Many people face the consequences of irresponsible use of credit that has been extended to them. Although it is true that many creditors extend credit to people whether they ask for it, or even need it, it is ultimately the responsibility of the individual who must refrain from the temptation of accepting unnecessary credit offers. Once the charge/payment cycle begins people soon find themselves out of cash for the necessary items they need. It then becomes necessary to use credit for the majority of purchases because there is no alternative source of money. This is credit addiction. Becoming aware of the depth of debt is the first step to wean yourself off of your credit addiction.

In many societies banks glamorize the use of credit through advertising, making credit cards appealing to those who want their dreams to come true immediately with a “buy now — pay later” attitude. This is a deceitful and dangerous ploy which makes your creditor rich and you in debt — with interest. It takes a strong will and determined mind to refuse such offers.

For people that have been caught in the credit trap there are ways to wean your self from credit addiction.

Refrain from the temptation to accept a credit offer. Just because it was offered does not mean you have to take it.

When accepting credit and using it, use it for items absolutely necessary such as, homes, cars, appliances, education, and other valuable items.

Do not use credit to purchase everyday items such as clothing, makeup, electronics and small home furnishings, and other nonessential items.

It is not necessary to have more than one or two credit accounts, and doing so can cause you to use those accounts unnecessarily. To successfully wean yourself off of your credit card addiction you must minimize the use of credit or eliminated altogether. In the long run having cash on hand for the things you love to buy will never be a problem.

If you want to collect more money just shut up and listen. Many accounts receivable professionals and people who collect money from delinquent accounts talk way too much.

In training people to improve their collection techniques, I have noticed that collectors, while on the phone or meeting with debtors face-to-face, typically do most of the talking while the debtor is not listening. The result is the collector does not get paid.

One of the key principles of collection management is to get debtors to discuss their accounts. Once debtors are talking about their debts you are well on the way to collecting the money.

So how do we get our debtors to talk? The main thing we have to do is to stop making statements and start asking questions. And, in the broadest sense, there are two kinds of questions we can ask: closed-ended questions and open-ended questions.

Of course, a closed-ended question is one the debtor can answer with a “yes or a “no.” For example, if you ask, “Will you send me a check today?”, the debtor can say, “Yep.” “Nope.” “Not in your life.” There is no talking required.

On the other hand, an open-ended question is one phrased so the debtor is almost forced to talk. For example, “Can you tell me what’s going on with this account?” Or, if it’s a small commercial account, “How’s your business doing?”

Or, if you know something about the customer, which I hope you do, “How’s that machine doing that broke down last month and caused you some production problems, is it up and running yet?” Or, “How’s your daughter doing that was in the hospital last month?”

Here’s one that I learned from Stephen Covey, the author of The 7 Habits of Highly Effective People. When they show some frustration, which they usually do, ask “You seem a little frustrated with this, are you?”

Those kind of open-ended questions will get your debtor to discuss the account. And once you having them doing it you’re on the way to collecting the money. It’s like a tennis match. While you’re talking the advantage is on the debtor’s end. But while your debtor is talking, the advantage is on your end.

So here is what I recommend. During your preparation phase, before you pick up the phone to call your debtors or meet with them face-to-face, write down some open-ended questions, in advance, tailored for them that you think will get them to discuss their debt.

The best I have ever seen at collecting money talk very little. All they do is ask open-ended questions designed to get the debtor to discuss the account. And by the kind of questions they ask they have a way to gently take their debtors where they want them to go.

And if I could choose one skill that I think is more important than all the other skills to do the business of collecting money well, I would choose listening skills. The best I’ve ever seen do not do much talking, but they do a lot of listening.

So remember if you want to get paid you’re going to have to get debtors to discuss their debts. And the best way to do that is to ask open-ended questions tailored for that particular debtor. By doing so, you’re talking as little as possible and the debtor is talking as much as possible. And the result is that you get paid.