There is no doubt that more and more families are struggling with the issue of debt. With an economy that has lagged for almost five years now, it seems as though many feel they might not see the light at the end of the tunnel. That’s not the case.

We know debt is nothing new to us but with this economy, the issue has been on the minds of many including those who thought they would not face the issue.

We want to offer as much assistance as possible and so here are our best helpful hints toward escaping debt and reaching a successful economic future.

First is to visit www.askdrdebt.com. This resource, founded by ACA International and their foundation has a ton of resources for individuals that have questions about debt and credit. This collection agency has also raised money, in fact thousands, to support this important initiative.

• Remember that paying off your debt is a process. Take things one at a time. Start by tracking your finances and really learning about how much debt you really have. Don’t hide anything from yourself. Lay it all out on the table.
• Find small ways to stop spending. Things like not carrying your credit card on you all of the time or using mostly cash can help.
• It seems logical to pay off your highest interest debt first. However, it’s best to start with your smaller bills and work up. This way, you will start to see results and step by step you will begin to conquer your debt.
• It may not be wise to pay a large bill all at once because you may end up back in debt very quickly. A good collection agency will help you resolve your debt, not just pay it off. If you get a call from a collection agency, make sure you don’t ignore it. Take the call and work out a plan to pay back what you owe.
• Lastly, ask for help. There is no shame in it and if you want to kick this, you need support and assistance. Once again, head on over to www.askdrdebt.com for tips and advice.

If you take time to lay it all out in front of you, create a solid budget, and stick to it, you will get out of debt. Depending on how much debt you have and your income, it may take longer than others but if you’re serious about tackling this issue, you’ll make it happen.

On June 23rd, the Tier II collectors in Michigan held an impromptu bowling tournament at a local Farmington Hills bowling alley. Although many of our scores were low, we made up for it in laughs. Congratulations go out to Barry, Chuck, Sean, and Rishi for their team scoring the highest team average for the outing. It was a great time had by all, and I am very much looking forward to the next outing. Thanks to Barry for taking us, and for everyone that participated. It was a blast, and a great chance to spend time with everyone away from the office.

Budgeting is like dieting. Both are scary words, let’s face it. For a society that so values our freedom, they become synonymous to restrictions and limitations. But that doesn’t have to be the case. Budgeting is a practice that should become routine for individuals, families and companies alike all through the year. Good budgeting can save your company and family from what could be unforeseen financial trouble ahead. In fact, a good budget can help you save money, afford the things you want and stay out of debt which is what we all strive for with our money.

A good, well thought out budget helps get your spending on track and reveals unknown cash problems. As someone who has worked at collection agencies for almost 20 years, I know the value of a strong budget in the household and in your business and I have seen what happens when people don’t budget.

So how do you do it? Like any new year’s resolution, the trick is to keep up with it long after the month of January. At the beginning of the year, sit down and look at everything. Look at cash coming in such as salaries in the household, take a look at all your expenses such as regular bills, utilities, school fees etc… Hopefully you have done this as it is now June… If not, you can start now.

Maintenance: In the beginning of every month sit down and revisit your budget. It may take a couple tries to figure it out, but soon you’ll find that your money is easy to manage. Make sure you’re on track and if you’ve encountered any expenses that were unforeseen, take that into consideration and adjust your spending accordingly to make up for it.

Pull all your expense, bank statements, credit card statements, receipts from things you purchased or food you paid for and add it all up. Grab your check book and balance that. If you don’t know how, hit a website such as www.askdrdebt.com to find out how. If you’re on track, congratulations! If not, adjust accordingly and renew your commitment to stay within your budget.

It is in fact liberating to have complete control of your finances. Whether your goal is slimming your waist line or your debt, planning is the most important step.

If you take time out every month to revisit your budget, you’ll soon have control over your finances and you’ll even feel better knowing that you are in control.

On June 13, 2011, the New York Times published an article on the debt collection industry and our quest to earn a little more respect. The article “Debt Collectors Ask to Be Paid a Little Respect” talks about how collection agencies and the employees who work there are sometimes harassed as bad if not worse than the complaints that are directed at them so frequently.

In the NY Times debt collection article it talks about how many reputable collection agencies are trying to portray a positive image and it talks about ACA International and their efforts to engage lawmakers to draft new laws or update existing laws to compensate for the change in times and technology. That among many other initiatives is starting a wave in the debt collection industry of toning down the tension between consumers and those that call to resolve a debt.

We understand that being in debt is a stressful situation and that some in our industry have not made it any easier on collection agencies that do operate under the highest of standards. We get that and we’re trying hard to change the landscape of this industry. We think we’ve done a pretty good job and others have followed.

We ask that you judge for yourself by reading the article.

And, if you are a small business that has been helped by a third-party collection agency such as American Profit Recovery, tell your story in our comments section.

The full article can be read here: http://www.nytimes.com/2011/06/13/business/13collect.html?_r=3&pagewanted=1 

We’ve always said we are different and we have made it a point to show customers and the public that we are different through our actions and our business model. One of the ways we are different than many collection agencies is our APRweb technology. Aside from our cost-effective Tier I solution and our diplomatic approach, this is another way for us to be different and show the customer that placing accounts receivables with APR is a smart move.

Through APRweb, we can empower a client to take charge of their receivables any time during the day. They are in charge including entering accounts, making changes to those accounts and monitoring progress as we work to get them paid.

It’s an open book as it should be. These are your customers. But not only that, it makes the process of tracking down late receivables that much easier for the customer. As many of our customers are small businesses that rely on the owner or manager  to do much of the back end work while servicing clients, it allows them to handle this part of this business in a timeframe that works for them. Day or night… More on APRweb can be found here; http://www.americanprofit.net/about-aprweb.htm

I recently had the chance to talk with our own Jeff Spurgess about what makes APRweb such an important tool for the customer;

Keeping a sharp eye on your finances does not mean you are a cheap skate. There is something to be said about living within your means, especially if you are a small business just starting out and looking to maximize your money. Here are a few quick tips to save you a few bucks on your small businesses expenses. Happy Friday!

Consider travel expenses: If you are a small business dependent on making deliveries or one that must consider other travel expenses consider a few factors. Look for more effective routes that may be less mileage or combine trips to cut down on miles traveled. Also, if possible, try not to schedule deliveries at peak drive time hours so you are not burning up gas while idling in traffic.

Adopt used goods: Small businesses looking for office and equipment should consider the benefits of finding used supplies and furniture. Some items in the economy can actually cost you nothing as many business need to get rid of unwanted furniture. We know many businesses that have furnished their offices for next to no cost.

Improve internal accounts receivables: Many small business owners and operators keep their accounts receivables processes in-house in an effort to save money. That’s a smart move. However, if accounts remain unpaid for long amounts of time, businesses end up losing money and put their financial futures at risk. Help from a reputable collection agency can actually save you money as well as time. Get your back end in order and you might see that cash flow improve rather quickly.

My last blog post gives you tips for buttoning up your accounts receivables. Take a look.