Reasons for non-payment of debts - what are the most important?


A debtor who does not pay his liabilities is the bane of many entrepreneurs. Usually, people running a business try to solve this problem by sending further requests for payment, using the services of debt collection agencies or even bringing a lawsuit to the court (electronic writ of payment proceedings are particularly popular in such cases). In the process of debt recovery, however, it is also worth paying attention to the reasons for non-payment of debts by the obligated.

Too small loan amount as reasons for non-payment of debts

As absurd as it may sound, often the reason for defaults is too low the amount of the loan. The debtor may not take small obligations seriously or convince himself that the debt is so low that he can pay it at any time. Often, debtors also count on the fact that the creditor will resign from recovering the obligation himself - the process of enforcing the payment itself is long and not always pleasant, but it is not worth letting go, because we show that it is easy to discourage us and we do not care about money, so it is easy to use us.

Reasons for non-payment of debts - the debtor already has his debtors

Debtors often make payment of debts dependent on whether they themselves manage to collect the payment of liabilities from people who owe them money. This behavior can have two aspects - the debtor has no funds to pay off the debt and only a cash injection from paying the debt. He may also not want to spend on the payment of current funds and hopes that it will be possible to do so using the surplus, which is to be provided by the person who has a pecuniary obligation to him. While in the first situation you can understand the debtor and try to find a solution (an assignment of receivables may be a good solution), in the second one you should definitely exercise your rights.

Mistakes of debt collection companies as reasons for non-payment of debts

The reasons for not paying your debts can also be quite unexpected - one of them could be the improper behavior of debt collection agencies. They often use measures that are completely unsuited to the debtor's situation and temperament. The use of veiled threats, moralizing or simply rude can reassure the debtor that it is not worth negotiating with the other party and paying off the liabilities. It is true that the creditor has no direct influence on this, but before taking any action, he may try to establish a debt recovery strategy with the debt collection company, and if this is not possible - contact the debtor and try to repair the relationship.

Reasons for non-payment of debts - summary

Of course, the above-mentioned situations do not exhaust the catalog of reasons for non-payment of debts by the obligated persons - sometimes the cause may be a sudden financial crisis of the debtor, a poor season in the company's operations or, for example, personal expenses. Knowing the reasons for non-payment of debts, we can come to an agreement with the debtor in an appropriate way that suits the situation. If we understand the reasons that guide him, we can gain his gratitude and kindness, and thus - get our money back.