The older the debt, the harder to get


Credit Management Tip

It’s a fact – as a debt ages, it becomes much harder to collect. Data ages and becomes less relevant. People forget and prioritize other debts. People want you to forget! You spend more time and effort collecting, so cost increases. For these reasons, focusing resources on Pay-On-Time (POT) pre-delinquency actions and early-life Collections contacts has proven its worth, stemming aging and improving the efficiency and cost of collections.


Despite this fact, many businesses still spend a lot of their resources prioritizing very old debts. It’s a self-defeating cycle – chasing the older debts means you have fewer resources to prevent aging. The answer (in brief):


  1. Taskforce the very old and aging debt with recovery linked rewards.
  2. Shift functional and automated treatment focus to POT activity and see massive increases in on-time payments.
  3. Focus collections contacts and resources on the 30-day aging bucket to stem the tide.
  4. Refresh the Treatment/Dunning cycles to reflect segment and customer group specific needs and performance.
  5. Automate as much as you can – you’ll be surprised what can be automated with improved customer experience.


This simple 5-step strategy has proven itself time-and-again. Not expensive, simply an adjustment in approach using existing resources and tools. Try it and see!

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