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Collection Tactics to Recover Unpaid Credit Card Debt

credit card debt


Segment Your Delinquent Accounts

Collection capacity isn’t unlimited, particularly when delinquency rates are rising. To use your limited capacity most efficiently, it’s helpful to segment your accounts based on delinquency length, the likelihood of collection success, potential recovery amounts, and other factors.

If you have the data available, it’s also useful to segment your delinquent customers based on the channels they’re most likely to respond through.

Segmentation models allow organizations to predict which accounts will require the least effort to recover the most significant portion of funds owed. This amplifies your recovery efforts and prevents your collections staff from spending an inordinate amount of time trying to collect what may be unrecoverable debt.

Expand Your Contact Channels

Modern consumers are reachable in a variety of ways. Phone calls have been the mainstay for collections, but in many cases, consumers have learned to avoid numbers they don’t recognize.

To increase your chances of success, assume an omnichannel approach that works to reach customers at every touchpoint available.

Options include, but aren’t limited to email, text messages, chat applications, and social media platforms. Particularly with younger debtors, digital communication methods tend to be more productive.

Targeting your delinquent accounts across a variety of channels makes it more difficult for them to ignore you. On the flipside, allowing them the freedom to respond to you on a channel they prefer will help you make contact.

 

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Be Compassionate, Not Combative

Approaching delinquent customers in a threatening manner tends to compound their problems. Not only do they owe money, now they have to duck angry phone calls. Hostility often increases a debtor’s tendency to bury their head in the sand and pretend the problem doesn’t exist.

Instead, approach customers with the assumption that they’re good people suffering from adverse circumstances. Instead of threatening them, work to understand what’s going on for them. When you come to debt collection compassionately, you become an ally, not an enemy.

Make sure they know that you’re willing to work with them and that you appreciate their circumstances. Customers that want to pay but can’t, will appreciate the lifeline you’re extending them, making return contact more likely.

Employ Skiptracing

Skiptracing involves compiling information from multiple sources, including credit bureaus, public records, internal research, and other sources, to build a cohesive picture of your delinquent accounts.

When a customer has moved on from known addresses and is no longer reachable, cross-referencing multiple data sources makes it possible to trace where they are and provides possible contact channels.

Be Persistent

Collections can be a thankless task. Delinquent customers can make it extremely difficult to contact them. However, in nearly every case, there are moments, due to entirely unpredictable factors when they’re open to having a conversation.

These moments of clarity can’t be foreseen, so the best way to time your phone call or text message with one is to attempt contact frequently and persistently. This process alone can generate a breakthrough by wearing your customer down.

You won’t be rewarded if you approach collections with sparse and inconsistent contact attempts. Your customer needs to know you’re trying to reach them, and you can’t let them forget.

Be Willing to Settle

Sometimes getting something is better than nothing. If you’ve exhausted your other options and your customer indicates they might be able to afford payment terms with a lowered principal, then a settlement might be in order.

Consider lowering the total debt, dropping the interest rate, or both, bringing the customer’s monthly payment into a manageable range. In many cases, customers stop paying not because they don’t want to, but because they can’t. Helping them get their financial situation under control may allow them to resume regular payments.

In the end, some debts aren’t recoverable, but with the consistent application of principles like those detailed above, a higher than average percentage can be collected.

Use a Collection Agency

Hire a credit card collection agency to effectively recover money from your delinquent accounts.

Collection Demands Service
  • The upfront cost for 5 Collection Letters is about $12 per account.
  • Debtors pay directly to you, no other fees. Low-cost option.
  • Good for accounts less than 120 days past due.
Collection Calls Service
  • Contingency fee only. No upfront or other fees.
  • Agency gets paid a portion of the money they recover.  No recovery-No fees.
  • Best for accounts over 120 days. A debt collector calls your debtor many times.
  • If everything fails, a possible Legal Suit is recommended by the attorney.

Filed Under: Debt Recovery

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    Note: Nexa is an information portal that helps businesses and medical practices to find a good collection agency at no cost to them. We are not a collection agency. We do not perform any collection activity, nor take payments, nor do any credit reporting. Leads shared with shortlisted agencies with Low Contingency Fee and High Recovery rates.

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    Copyright © 2025 NEXACOLLECT.COM | All information on this website is for general information only and is not an experts advice. We do not own any responsibility for correctness or authenticity of the information, or any loss or injury resulting from it. Nexa is not a collection agency. Relevant inquiries are contacted by our shortlisted collection agency partner(s)

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