With everyday items costing more and people having less, it is likely that there will be a sharp rise in ‘can’t pays’ compared to ‘won’t pays’. The importance of working with your debtors is paramount so you and your business can limit your risk and exposure to debt.
The cost of living is increasing
Inflation was up 6.2% as of February 2022. Fuel prices rose 12.6p per litre between February and March 2022. The same months in 2021 saw only a 3.5p per litre rise. Everything is getting more and more expensive, and debt is increasing. At the end of January 2022 people and businesses in the UK owed a whopping total of £1,767.1 billion.
As of now the metoric rise in fuel prices have only just reached their peak and are slowly decreasing. Inflation is still high at 8.8% as of the Office of National Statistcs latest report dated 17 August. The Bank of England base rate is now up to 1.75%, this is more than double its previous record high at 0.75% in February 2020.
Recovering debts
There has always been a stigma attached to being in debt, but it is an unfortunate reality for many people. In DebtLink we aim to open a frank and non-judgmental dialogue when recovering debt on our clients’ behalf. We understand that debt is never just a money problem, it is a people problem and there are often reasons behind the ‘can’t pays’ that will not be obvious on the face of it.
Our team will invite open and honest communication and work with both our clients and their debtors to secure a mutually beneficial outcome. By requesting and reviewing income and expenditure information and explaining the consequences of burying one’s head in the sand, our team are able to drill down to the root of the debt and provide a workable solution.
Our DebtLink service
By trusting the DebtLink team to take care of your bad debts, you are free to focus your mind on paying customers and keeping your revenue strong. With a combined experience of 40 years, we are usually much better placed to have tricky conversations with debtors on your behalf.
We will also draw upon local knowledge to assist us in our collection efforts and have seen an increase in hospitality and construction debts. We have even recovered thousands of pounds that one client thought was never going to be received from a particularly tricky debtor.
If you are struggling with recovering debts or just looking for some best practice advice, then please do contact our Debtlink team on 01872 265109 or email us at DebtLink@Stephens-scown.co.uk