Do You Create Problems For Yourself Through Bad Debt Management?

What sort of mistakes do people make that lead to bad debt management?

Perhaps this will be a shock to you, but people with debt problems mismanage their accounts all the time. Debt management agencies would not exist if everyone handled their paperwork properly.

As you will have seen from other pages on this site, I have chased a business debt from a former partner who stole from me. He made many mistakes along the way which made it easier for me to collect from him. Without a doubt, apathy was his main problem.

In all the time I was chasing him, he never once answered a letter that I wrote to him. Perhaps he thought that I would forget and it would all just 'go away'. Of course, on the day that we ended up in court, I had copies of letters, requests, court documents and more. He had the same copies, but nothing that came from him. The judge criticised him for bad debt management and failure to even try and negotiate.

Another lesson in bad debt management that I learned from this fellow was that of honesty. When cornered, by anyone, he lied to solve the problem. As always, these lies caught up with him eventually.

Once his reputation was stained by his lies, he lost his job, then lost a second job and soon was unemployable in the city he lived in in his area of expertise. It is a small world and all his potential employers knew each other. His lies effectively cost him his career.

These are just two examples of bad debt management, there are many more. As with anything in life, debt management, requires you to think carefully and work hard. Don't make the simple mistakes that this fellow did.