I2CREDIT Nº 42
Collectors Need To Start With Their Own Budget
The focus of collector training normally involves specifics about the Fair Debt Collection Practices Act, guidelines on how to negotiate a payment and tips on overcoming objections. Collectors are encouraged to build relationships with customers by showing genuine concern about the debtor's financial situation and understanding the events that led to the financial setback. In many cases, the debtor has existed with a "financial juggling act" and truly does not understand where his/her money is spent. The collector then takes on the role similar to a personal financial advisor. Many collectors do not understand their own personal finances and few have created a budget, reconciled last month's bank statement or established a savings plan for emergency situations. You may want to consider adding a personal financial component to your collector-training program.
Por: Bev Evancic - www.collectionindustry.com
Have you ever taken $20 out of an ATM and reached in your wallet the next day only to find that you spent the money, without any recollection of how you spent the money?
The first step to understanding personal finances is to be aware of where your money is spent. One exercise that may help collectors identify where money is spent is to ask the collectors to get a receipt or billed statement for every purchase/payment, including small goods such as a soft drink at the drive thru for a specific period of time (one week, duration of training program, etc.). It is helpful if the collectors have an envelope or receipt log with them at all times so that they remember to record the purchase or put the receipt in the envelope. At the end of the specified time period, have the collectors place the receipts in categories and total the expenses. Some categories that you may want to consider include:
* Housing (mortgage, rent, insurance, cleaning supplies, etc.)
* Transportation (car payment, parking, insurance, gas, public transportation)
* Food (grocery store, drive thru, restaurants, etc.)
* Health/Medical (insurance, office visits, drugs, etc.)
* Personal (clothing, child care, gifts, etc.)
* Loans (credit card, line of credit, student loans, etc.)
* Entertainment (movies, hobbies, etc.)
* Savings
* Other
Because of the sensitivity of the information, it is important to provide an area where the collectors may work in privacy or allow them to complete the exercise at home. In many cases, the collectors will be surprised at where their money is spent and identify areas that are not necessary expenses.
Planning
For many consumers, credit card debt has become a monthly expense without the consciousness of the total outstanding debt. A successful month is defined as having enough income to cover monthly expenses. Difficulty arises when something unexpected occurs, such as an increase in minimum monthly payments. It is beneficial to understand how expenses have been paid in the past and the mind-set for priorities in spending and paying bills. Some of the topics that you may want the collectors to consider follow.
Bonuses
It is a nice surprise when extra money is received, such as a bonus or gift. The money may come in handy to pay-off some existing debt or purchase a luxury item. The problem arises when you depend on the bonus as part of your income. A bonus is not an ordinary part of your salary and you cannot depend on receiving the money on an on-going basis. Your monthly budget needs to be based on your normal take-home pay.
Large Purchases
How do you plan for large purchases, such as appliances, carpet, car, etc.? For example, if you noticed that your carpet needed to be replaced, do you
- Get the money from a savings account?
- Change your current spending (cut down on luxury items) and saving (increase amount saved) pattern to accumulate the amount needed to pay for the carpet?
- Charge it on a credit card?
- Write a check and let the checking account go into overdraft protection?
- Get a home equity loan or borrow from some other source?
- Look for a store that offers no down payment and twelve months same as cash (and hope that you are able to pay off the account balance within the terms)?
Emergency Purchases
How do you plan for emergency situations, such as a car repair or travel expenses to visit a friend or relative in need? For example, if your car needed a new transmission, would you
- Get the money from a savings account?
- Not pay some bills and use that money to pay for the car?
- Charge the expense or borrow money from some other source?
Credit Cards
Do you have balances that revolve on credit cards? Why do you have credit card balances that revolve?
- I have enough money saved in a low-risk investment (savings account, money market) to pay the account balance but the interest paid in the account is higher than the rate on the credit cards;
- I wanted something and bought it without the money to pay for the purchase within 30 days;
- I used it for an emergency and was not able to pay it in 30 days
* I stopped using the credit card until I was able to pay the account balance
* I continued to make charges on the credit card;
- Used it to pay other bills (luxury or necessity)
* I stopped using the credit card until I was able to pay the account balance
* I continued to make charges on the credit card.
Have you been past due on a credit card payment within the last 12 months?
- Did the interest rate increase?
- How much were late fees?
- Did you continue to charge on the account?
- Did you borrow money to pay the account?
- Did you establish a payment plan?
- What is the interest rate on your credit card?
Do you depend on credit cards to pay monthly expenses?
Savings/Checking
* Do you put a set amount of money in a savings account on a monthly basis?
* Do you participate in a long-term savings plan (IRA, company matching program, etc.)?
* Do you reconcile your bank statement on a monthly basis?
* Do you write down withdrawals and deposits in your checkbook or do you "just know" you have enough money?
* Do you utilize overdraft protection?
Creating a Budget
There are some good resources available on the Internet to help create a budget. One source for Visa Issuers is www.moneychoices.com. The web Site provides personal financial information on topics such as balancing your checkbook and creating a budget. You may even want to develop a generic budget on a spreadsheet and provide it to all of the collectors. Budgets are not defined as frugal. A budget helps you keep a record of your monthly expenses and payments and understand your outstanding balances. Some of the categories that you may want to have collectors capture on a budget include:
- Housing (mortgage, rent, insurance, cleaning supplies, etc.)
- Transportation (car payment, parking, insurance, gas, public transportation)
- Food (grocery store, drive thru, restaurants, etc.)
- Health/Medical (insurance, office visits, drugs, etc.)
- Personal (clothing, child care, gifts, etc.)
- Loans (credit card, line of credit, student loans, etc.)
- Entertainment (movies, hobbies, etc.)
- Savings
- Other
Benefit
Collectors that understand their own finances tend to identify with debtors as they struggle to make ends meet. Collectors can talk about their experience with understanding how their money was spent and how they were able to use the information to make better financial choices.
Ultimas Notas
I2CREDIT Nº 42
Fideicomisos Financieros con Oferta Pública: Es hora de pasar a una nueva etapa
En la presente nota vamos a tratar los aspectos que caracterizan a los fideicomisos financieros con oferta pública y señalar algunos temas pendientes de ésta herramienta. En otra nota posterior encararemos la evaluación de estas operaciones desde el punto de vista de los potenciales inversores.
Por: Publicado en: www.Citieconomika.com
Decision Engines: Facilitando el trabajo a los que toman las decisiones
El subgerente de iniciación crediticia quería realizar una simple modificación a sus políticas: la edad mínima para calificar para cierta tarjeta de crédito bajaría de 21 a 18 años. También deseaba acortar los tiempos para poner en producción el scorecard de crédito recientemente desarrollado. El director de crédito pensó en correr estrategias en paralelo para de esa forma tener en producción al mismo tiempo dos formas distintas para proactivamente ofrecer aumentos en las líneas crediticias dirigidas a los estudiantes universitarios. El gerente de cobranzas planificaba introducir un nuevo criterio para segmentar las cuentas con una morosidad de entre 30 y 60 días. El director de marketing necesitaba modificar un reporte para que la información estuviera agregada por nivel de utilización de los préstamos personales otorgados en los últimos 6 meses, variable que no existía en la base de datos del banco, y por zona geográfica.
Por: Guillermo Szafir Director - Saza Solutions
México: El crédito bancario al consumo aumentó 460% en 5 años
Convertida en la principal promotora del gasto, en detrimento del ahorro, la banca comercial que opera en el país incrementó en más de 460 por ciento el monto de los recursos destinados a la compra de mercancías a crédito durante los últimos cinco años, indican informes del Banco de México (BdeM).
Por: Juan Antonio Zuñiga - www.jornada.unam.mx
Argentina: Microfinanzas
Un impulso para crecer.
Una red de apoyo gestada entre universidades y cámaras empresariales promueve el crecimiento de emprendimientos de subsistencia para que se transformen en PyMEs.
Por: Gabriela Ensinck - www.fortuna.com
Positivas proyecciones para la economía global al primer trimestre
Cuando las principales regiones de la economía mundial acaban de cerrar su tercer mes de 2006, las perspectivas para el crecimiento en el primer trimestre parecen auspiciosas. Economistas encuestados por Bloomberg proyectan en promedio que el Producto Interno Bruto de Estados Unidos se aceleró a 4,7% en el primer cuarto del año, un fuerte incremento respecto del 1,7% del último trimestre de 2005 y del 3,8% registrado en el primer trimestre del año pasado. Otros sondeos realizados por Reuters apuntan incluso a una expansión de 5,0% en los tres primeros meses de 2006.
Por: Publicado en: Diario Financiero - Chile
Notas Destacadas
- 2012
- CREDIT PERFORMANCE Nº 106
- CREDIT PERFORMANCE Nº 105
- CREDIT PERFORMANCE Nº 104
- CREDIT PERFORMANCE Nº 103
- CREDIT PERFORMANCE Nº 102
- 2011
- CREDIT PERFORMANCE Nº 101
- CREDIT PERFORMANCE Nº 100
- CREDIT PERFORMANCE Nº 99
- CREDIT PERFORMANCE Nº 98
- CREDIT PERFORMANCE Nº 97
- CREDIT PERFORMANCE Nº 96
- CREDIT PERFORMANCE Nº 95
- CREDIT PERFORMANCE Nº 94
- CREDIT PERFORMANCE Nº 93
- CREDIT PERFORMANCE Nº 92
- CREDIT PERFORMANCE Nº 91
- 2010
- CREDIT PERFORMANCE Nº 90
- CREDIT PERFORMANCE Nº 89
- CREDIT PERFORMANCE Nº 88
- CREDIT PERFORMANCE Nº 87
- CREDIT PERFORMANCE Nº 86
- CREDIT PERFORMANCE Nº 85
- CREDIT PERFORMANCE Nº 84
- CREDIT PERFORMANCE Nº 83
- CREDIT PERFORMANCE Nº 82
- CREDIT PERFORMANCE Nº 81
- CREDIT PERFORMANCE Nº 80
- 2009
- CREDIT PERFORMANCE Nº 79
- CREDIT PERFORMANCE Nº 78
- CREDIT PERFORMANCE Nº 77
- CREDIT PERFORMANCE Nº 76
- CREDIT PERFORMANCE Nº 75
- CREDIT PERFORMANCE Nº 74
- CREDIT PERFORMANCE Nº 73
- CREDIT PERFORMANCE Nº 72
- CREDIT PERFORMANCE Nº 71
- CREDIT PERFORMANCE Nº 70
- CREDIT PERFORMANCE Nº 69
- CREDIT PERFORMANCE Nº 68
- 2008
- CREDIT PERFORMANCE Nº 67
- CREDIT PERFORMANCE Nº 66
- CREDIT PERFORMANCE Nº 65
- CREDIT PERFORMANCE Nº 64
- CREDIT PERFORMANCE Nº 63
- CREDIT PERFORMANCE Nº 62
- CREDIT PERFORMANCE Nº 61
- CREDIT PERFORMANCE Nº 60
- 2007
- CREDIT PERFORMANCE Nº 59
- CREDIT PERFORMANCE Nº 58
- CREDIT PERFORMANCE Nº 57
- CREDIT PERFORMANCE Nº 56
- CREDIT PERFORMANCE Nº 55
- CREDIT PERFORMANCE Nº 54
- CREDIT PERFORMANCE Nº 53
- 2006
- CREDIT PERFORMANCE Nº 52
- CREDIT PERFORMANCE Nº 51
- CREDIT PERFORMANCE Nº 50
- CREDIT PERFORMANCE Nº 49
- CREDIT PERFORMANCE Nº 48
- CREDIT PERFORMANCE Nº 47
- CREDIT PERFORMANCE Nº 46
- CREDIT PERFORMANCE Nº 45
- CREDIT PERFORMANCE Nº 44
- CREDIT PERFORMANCE Nº 43
- CREDIT PERFORMANCE Nº 42
- CREDIT PERFORMANCE Nº 41
- 2005
- CREDIT PERFORMANCE Nº 40
- CREDIT PERFORMANCE Nº 39
- CREDIT PERFORMANCE Nº 38
- CREDIT PERFORMANCE Nº 37
- CREDIT PERFORMANCE Nº 36
- CREDIT PERFORMANCE Nº 35
- CREDIT PERFORMANCE Nº 34
- CREDIT PERFORMANCE Nº 33
- CREDIT PERFORMANCE Nº 32
- CREDIT PERFORMANCE Nº 31
- CREDIT PERFORMANCE Nº 30
- CREDIT PERFORMANCE Nº 29
- 2004
- CREDIT PERFORMANCE Nº 28
- CREDIT PERFORMANCE Nº 27
- CREDIT PERFORMANCE Nº 26
- CREDIT PERFORMANCE Nº 25
- CREDIT PERFORMANCE Nº 24
- CREDIT PERFORMANCE Nº 23
- CREDIT PERFORMANCE Nº 22
- CREDIT PERFORMANCE Nº 21
- CREDIT PERFORMANCE Nº 20
- CREDIT PERFORMANCE Nº 19
- CREDIT PERFORMANCE Nº 18
- CREDIT PERFORMANCE Nº 17
Ultima Revista
Noviembre 2011
Julio 2011
Ediciones Anteriores
Regístrese
Anuncie en la revista
Si desea anunciar en nuestra revista, contactese con:Rodrigo Rotunno
rodrigo.rotunno@cmspeople.com
+ 54 (11) 4313 4000
