Why don’t people pay their debts?

Why don’t people pay their debts? Ahhhh yes, the $26 billion dollar question! Why indeed. Ladies and gents, there are 4 main reasons why people don’t pay. Yes, only 4. And they are:

– Don’t have the money.
– Don’t agree with the bill.
– Don’t want to pay.
– They forget.

If you are chasing outstanding invoices, I guarantee it is because of one of these four reasons. Now, simply knowing why doesn’t get you paid does it- for that, we need to delve much deeper.

Don’t have the money.
Not much you can do about this. If they don’t have it, they don’t have it. But you can be damn sure they have got something. Ask for a part payment, a “goodwill lump sum” as we put it. $100. It doesn’t matter. Just ask for a part payment.

Don’t agree with the bill.
Ok, fair enough. But are they not happy with ALL of the bill or just a portion of it? Really unpack their dispute and get them to put a dollar value on the part they are disputing- once you have this dollar value, subtract it from the total they owe you and voila- the number you get will be an amount they should have no problem paying.

Don’t want to pay.
People like money. We all do. We like having it, and we like seeing it in our account. Time and time again, clients will send us debts they have been trying for months to get paid. We send one email or make one phone call, and they pay straight away. Why is that? Simple- they had the money all along, they just didn’t want to give it to you. Ridiculous huh, but such is the mindset of debtors. The way to get these people to part with it- urgency. Create urgency. Give them a 24 hour deadline otherwise threaten to sue them.

They forget.
Easy to do right. We all forget things. The key here- reminders. Lots of them. Constantly. Until you get paid. Call them, text them, email them.

Cheers

Why don’t people pay their debts?

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