debt repayment

5 Things Debt Collectors Must Not Do

No business would want to scare his customers away or get negative reviews online.

But at times, businesses do that intentionally or unintentionally when they had to deal with debtors.

What separates good businesses from bad ones is their flawless strategy to recover debt. They may have a separate risk management department calling customers to clear their dues, or rely on debt collector singapore agencies for this purpose.

So, if you hired any such service, make sure it follows the rules and regulations set by the governing body or association. Be careful while choosing any debt collection service because they might end up ruining your brand reputation.

However, you may give a line of action to your debt collector and the debt collection agency and share these 5 things and make sure that your debt collector doesn’t do it.

1. Sending Angry Mob

If you think sending an angry mob to your customers can get you the money, think again. Your debtors have a right to call the police for such unlawful assembly. 5 or more people gathering with an intention to take the money by force or offence is an act of crime in Singapore.

2. Vandalism

It is an act of violence – destroying or damaging a private or public property with or without a motive, and it results in conviction. So, give clear instructions not to use this practice on any of your debtors.

3. Violence

Banging on customers’ doors, shouting, abusing or insulting them, or threatening to beat them, these acts come under violence. Your customers can call the police and later, your debt collector might reveal your name. Therefore, it’s better to choose someone who adopts professional ways to recover the dues.

4. Harassment

If a person causes harassment, distress or alarm to someone by abusing him or using inappropriate vocabulary; or show unacceptable behavior to recover the money owed; all of these acts are illegal. In doing so, there is a higher probability of conviction than getting the money back. Harassment is by no means acceptable irrespective of the cause. So, don’t let them practice it on your customers.

5. Taking Possession of the Things Customers Own

Debt collectors are not allowed to possess or seize the property of the customer without legal notice. So, let the concerned agency know that it must apply in court to get the writ of seizure and sale, before taking possession of the property. Instead of threatening the customer, it is better to send a notice stating the next step, if he fails to repay the amount.

Professional and experienced services understand that there is a great risk in practicing these acts on customers. So, think twice before choosing the right service for debt recovery.

Read about our earlier article on interesting things to know about debt collection.

How to Pay Off Your Debt in 9 Simple Ways


Are you worried because a debt collector has just reminded you to clear your dues before a certain date, and you have no idea how you’re going to pay it off? You’re not the only one dealing with this problem. In fact, the majority of debtors don’t know how much they’re supposed to repay. Anyhow, you have to be vigilant because delinquent debts may affect your credit scores anytime. 

So, if you’re looking for ways to repay your debts, here are 9 possible ways do it:

1.    Budgeting
This may seem like an “old-school solution” to you, but it’s the best and probably the easiest way to monitor your financial position. There are plenty of financial tools to create an income/expense sheet that can help you cut down expenses and pay your dues. 

2.    Concentrate on the Most Expensive Debt
If you have more than one creditor, arrange the interest rates in descending order (from highest to lowest).  According to experts, clearing high-interest debts always help to maintain a high credit score. Moreover, debt recovery services will also advise you to repay the debts with high interest.  

3.    Impact of Paying More than Minimum Balance
Try to pay more than what you're supposed to pay on monthly basis. If you stick with the minimum balance, it will only prolong the debt payoffs. You can make weekly payments, or double the number of monthly payments. In this way, you'll show strong commitment of paying everything off.

4.    Balance Transfers
Here's another strategy to reduce the burden. If you're confident to pay back the balance with high-interest rate, in two or three months, you can transfer the debt to a credit card that doesn't charge anything (zero-interest) on balance transfers. Make sure, the balance must be paid before expiration; otherwise, you'll end up getting the much higher rate.

5.    Stop Credit Card Spending
This is yet another old-school trick, but it always works. You can halt the spending via credit card and prevent debt accumulation. It’s quite hard to leave your credit card at home, especially when you can earn reward points and cash backs. But controlling your finance is more crucial right now.

6.    Allocate Monetary Incentives toward Debt
Think about the bonus you’re going to get next month. You can utilize it to pay back your debts. If you have a debt payoff plan, allocate your extra earnings toward minimizing your debt burden. So, cancel any plans for vacations this year, because, you’ll get more satisfaction when your debts are paid off.

7.    Don’t Forget to Remove Credit Card Information Online
Online shoppers often tend to store their credit card information on e-commerce stores, just to save few minutes. The bad side of this practice is, you may be charged for the things you don’t really want. Instead, use debit cards to pay for recurring services. 

8.    Sell Things You Don’t Want
Surely, there will be plenty of unwanted things in your house, and you can sell them online. In this way, you can earn quick money and repay your bills.

9.    Change Your Lifestyle
Other than emergency situations, people often become indebted because of their lifestyles. So, before you get a call from debt collection agency, think about your routine and see where you can cut down your expenses.