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7 Ways to Recover Money from Debtors

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Asking someone to pay you back the money they owe you can be very uncomfortable at times. But no matter how uncomfortable it might seem, it’s necessary to regain the money you had lent to somebody. Debt collection is a rapidly growing market, with an estimated size of $1.6 bn AUD in 2022.

If you have a debtor who refuses to pay back the due amount, it’s time to take matters into your own hands. Here are some ways to recover money from your debtors.

1. Send a polite reminder

You don’t need to threaten or be impolite the first time you ask your debtor to pay up. Initially, send a friendly and polite reminder to them via a phone call, mail, or even a letter.

Maybe your debtor had a genuine reason to forget about the payment or made a mistake and ended up paying somewhere else. So the first reminder should always be a simple and friendly one. In case you’re confused about what to write, you can refer to any reminder template online.

2. Reach out again

If the person concerned has ignored your message or simply hasn’t bothered to reply, it’s time to send them an overdue reminder. Mention the fact that you sent them a previous intimation (add a screenshot along, if possible) and that it was not replied to.

Give the customer another call or text, but be slightly more firm and strict this time. Ask them to repay you as soon as possible, since texting or mailing someone repeatedly can be an issue from both ends.

3. Send a final notice

This might get really tiring, but send a third and final notice, this time in the form of a warning. Don’t be rude or aggressive, but make sure you let your customer know that you are annoyed and dissatisfied with their behavior.

Politely tell them that if they refuse to answer, it might be time to contact an outsider’s help. A final notice can be slightly tricky to write, so refer to any final notice template on Google for your benefit.

4. Make a direct contact

If you know where your debtor lives, go and pay them a visit. Chances are, when they are caught off-guard, they won’t be able to make any excuses and will pay you back. But this will only work if you know where the person lives or works.

Visiting them in person can also strengthen your relationship with them that might come in handy later. Also, who knows, maybe your debtor lost their phone or had a problem with their bank account, which is why they couldn’t contact you.

5. Formal letter of demand

This is where things get official and tough. If all your attempts at contacting your debtor have failed, it’s now time to send a formal letter of demand. But this letter should only be given when there is no other way out; don’t use the letter right at the beginning.

Since a formal demand letter has the potential to sour or damage the relationship between you and your debtor, you must consider carefully before taking such a step.

6. Go to a debt-collecting agency

The next step here would be to go to a debt-collecting agency that will help you with your dispute. McMahon Fearnley Lawyers is a reputed agency dealing with services like debt collection through completely legal methods. McMahon will ensure that both parties abide by the necessary rules and you get your money back as soon as possible.

It will also help you draft a formal letter of demand, should you need one. In case the problem isn’t solved, and a higher authority is required, McMahon will help you through that too.

7. Get help from sources

Various sources like the Victorian Small Business Commission, Victorian Civil and Administrative Tribunal, and Consumer Affairs Victoria are specialized to solve consumer disputes and civil troubles. Consider going to them if you need assistance.

They all operate under Australian Law, so all their processes will be legal and trouble-free.

Over to you…

These are some of the steps you can take to collect money from your debtor. Remember not to resort to harsh methods right from the start as they can give a bad impression of you and cost your time and money.

But if things don’t improve, seek legal help from companies like McMahon Fearnley and ask them for advice.

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How You Can Avoid Credit Cards That Have Red Flags

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When you are searching for a credit card, you may examine multiple types of red flags, and you could avoid credit cards that have a high interest rate, extra fees, inflexible terms and a low credit limit. Before you submit an application, you could also evaluate the reputation of the lender. You may read many testimonials that describe the lender, the features of the credit card, the rewards and the experiences of customers.

Estimating the Fees

Some credit cards may charge substantial fees, and if a credit card requires an annual fee, you may avoid that credit card. Once you review the terms of the contract, you should examine the fees, the benefits of the credit card and the policies of the financial institution. Subsequently, you could obtain a credit card that does not charge fees, and this credit card may consistently reduce your monthly payments.

Determining the Interest Rate

Before a lender provides a credit card, the company could examine your credit score, the unused credit, the debt and the open accounts. Afterward, the business can quickly determine the interest rate of the credit card. If the credit card has a high interest rate, you may search for other credit cards, and you could select a credit card that provides a better interest rate, multiple incentives and online tools.

Reviewing the Terms of the Credit Card

While you review the terms, you can examine the company’s policies, the fees, the due date of the payments and the rewards. Some credit cards could also provide a cash advance, yet once a customer obtains a cash advance, the company may charge extra fees. Usually, you should avoid a credit card that has inflexible terms, and you could find credit cards that can provide cash advances, low fees and flexible terms.

Examining the Rewards

Some credit cards may provide incentives that can help you to save extra money. Once you make a purchase, the financial institution could automatically offer cash back, and after you access your online account, you can estimate the value of each reward. The company may also offer tools that will allow you to monitor your credit score. If a credit card does not provide substantial rewards, you may search for another credit card, and you could obtain a credit card that can reduce the interest rate, offer valuable rewards, consolidate several types of debt and decrease the monthly payments.

Comparing Many Credit Cards and Submitting an Application

Lantern by SoFi has designed a marketplace that can allow the customers to compare multiple types of credit cards. The borrowers may examine each lender, the benefits of the credit cards, the interest rate and the credit limit. Once the customers compare credit card offers, the borrowers could also find many credit cards that do not charge fees, and the customers can select credit cards that will help the borrowers to consolidate debt. Before a borrower submits an application, the company might prequalify the customer. Subsequently, the borrower could submit an application, examine the terms of the credit card, receive multiple incentives and utilize the credit card.

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Money

Bank Refinance Home Loan

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Interest rates are at all-time lows. If you’re considering a refinance on your mortgage, now may be the perfect time to lock in your rate.

If you’re consider Bank refinance home loan, now may be the perfect time to do it! Interest rates are at an all-time low, which means that right now is a great time to take advantage of lower interest rates by refinancing your mortgage. These low interest rates won’t last forever and when they rise again, it will be much more expensive for you to borrow money than if you were able to secure a refinanced home loan today. All this is to say that as you take a look at possible loan alternatives, refinancing your mortgage should be high on your list of possibilities. There are several reasons why this would be a good idea for you.

Refinancing can help you save money on interest and make it easier to deal with the financial stresses of monetary obligations. For example, if your interest rate is higher than what the marketplace can offer now, refinancing will allow you to lock in your rate for years to come and potentially save thousands of dollars in interest over the life of your loan.

Refinancing may also allow you to decrease the size of your monthly payments by lowering them below what they are now.

There are several loan types that you may consider for a refinance, such as a cash-out, interest-only, flexible payment plans and even home equity loans or second mortgages. Whatever your needs are and whatever works best for you, refinancing your home loan can be just what you need to help manage monthly financial obligations.

In today’s world, living in the moment is not always easy. On the one hand, you have to stay alert for opportunities and opportunities are plenty. On the other hand, your new business venture is still in its infancy and there is no sense getting ahead of yourself or making plans that will be irrelevant a month from now . . . if you know what I mean?

Here’s some ways to help you stay focused on your goals as you navigate through life: it’s all about priorities.

Prioritize: If there are multiple projects that could benefit from your attention, it may seem easier just to go with a little bit of this and a little bit of that. However, if you are going to be able to fit everything into a reasonable amount of time, it’s important that you make a plan and stick to it.

From paying bills to spending quality time with your loved ones, you will need to do what is necessary day-to-day. But don’t forget there will be days where you won’t have enough work or money coming in to reach the goals that you set when creating your plan. Look back on all the different tasks that were included in your plan and prioritize them based on how much time they take and how much money they require. Put yourself on autopilot so that you can focus on one thing at a time so that your mind can truly relax and feel at ease.

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Money

Benefits of the Endowment Plan

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An endowment plan is a life insurance policy that provides the benefits of insurance cover and saving plan. The endowment plan allows you to save regularly over a certain period to allow you to get a lump sum amount upon the maturity of your policy if you survive the policy term. However, in case of death, then the insurance company will pay the amount assured to the beneficiaries of the policy. If you are looking for an insurance policy that covers your life and also helps you save regularly over a certain period, then taking an endowment policy could be the right choice for you. The maturity amount can be used to meet your various financial obligations, including paying for your children’s education, buying a house, your retirement, buying a car, and much more. It is upon you to decide how to use the money. In this article, we will discuss the benefits of the endowment plan.

It provides higher returns

One of the greatest benefits of taking an endowment policy is that it guarantees higher returns to the policyholder. It is the best insurance plan to take if you want to guarantee the future financial stability of your family. The payout of death and survival benefits of an endowment plan is much higher compared to that of life insurance. Visit https://www.ocbc.com/personal-banking/insurance/endowment-plans.page to get more information about endowment plan returns.

It is a low-risk plan

An endowment plan is considered a low-risk investment compared to many other insurance plans. So, if you have a low tolerance for risk, then this could be the right plan for you. An endowment plan usually gives the policyholder the maturity amount if he/she survives the policy. This explains why this plan is widely preferred by risk-averse investors.

Dual benefits

An endowment plan provides two benefits at the same time. It allows you to save for the future and also provides life insurance benefits. In case of the policyholder’s untimely death, the beneficiaries will be paid the sum generated and if you survive the period, then a single payment will be paid to you upon the maturity of your plan. So, when you take the endowment plan, you will be killing two birds with one stone.

Flexible premiums

Another benefit of an endowment plan is that it gives the policyholder much-needed flexibility when it comes to the premium payment. As the policyholder, you can make premium payments based on the policy that you have chosen. For instance, you can make payments on a monthly, quarterly, half-year, or yearly basis. It is upon you to choose which payment plan suits you.

Conclusion

From the information shared above, it is evident that the endowment plan is one of the best and most profitable insurance investment options. More so, this plan comes with low risk, higher liquidity, and dual benefits. In fact, when you compare the benefits of this plan to those of other products, you will quickly discover that you will get value for your money if you choose this plan. The endowment plan also guarantees you and your family complete financial stability in the future.

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