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Guest Post: "A Primer on Collecting Late Payments"

From a friend who is an established consultant, who has both worked for major consultancies and run his own shop. He gives us these useful pointers today -

"A Primer on Collecting Late Payments"

Anyone who has ever done business has had occasional difficulties collecting payments from customers. Experience shows that putting some attention (in advance) on a couple of key items can help resolve the lion's share of these issues.

First general rule: Your written communication style and professionalism can go a long way toward inducing unwilling customers to pay up more quickly than otherwise.

Let me clarify these two terms:

Reduce Your Reported Credit Utilization

On Minimalist Wealth

The % of how much of your credit card you are using is 30% of what determines your credit score. Credit Bureaus take into account how much of each card you are using, as well as how much of your total credit you are using. You want to keep both figures between 1-10% (20% is not a big deal).

e.g.

Using 100% of your Chase Freedom card with $3000 limit and 0% of your Barclay World Arrival Card with a $3000 limit

vs

Using 50% of each card. The total credit utilization is the same (50%), but the first situation has a higher individual credit utilization on the Chase Freedom. It is better to evenly distribute your credit utilization.

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