Why you shouldn’t fear debt collection agencies

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More than a few individuals have confessed to having some amount of fear when it comes to dealing with debt collectors. As far as Brennan & Clark LLC is concerned, this is a very natural human reaction, considering the many debt collectors who have not been using best practices in doing business. This blog is about why people who are in debt shouldn’t fear debt collection agencies.

First off, debt collection agencies are interested in making a profit. You should realize that they can achieve this by providing you with manageable terms. If you think about it, it would be foolhardy for them to charge you with an amount that is greater than what you owe your original creditor. In fact, debt collection agencies can charge you with less than what you owe. You may be wondering how, and Brennan & Clark LLC is quick to explain.

When a creditor writes off your debt, meaning to say that they have determined that you do not have the capacity to pay for what you owe them, the creditor sells the entitlement to an external entity, which is the collection agency. This is usually sold for pennies to the dollar, much less than what you originally owe.

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With this, the collection agency has a lot of leeway in terms of how much they will charge you. Often, this means that you get to settle for less than the amount that you owe. Logically, this is because the collection agency did not pay too much for it anyway, and you should not be worried about having to pay a very big amount either.

Brennan & Clark LLC says that you can rest assured that there really is not much to fear when dealing a debt collection agency. If anything, they can provide you with the exact options that can work for you, so that you can be free of debt at the soonest.

Backed up with more than three decades of experience, Brennan & Clark LLC helps clients recover more from their delinquent accounts than they normally would with any other collections agency. It holds membership in many professional organizations like the Commercial Collection Agency Association, the Commercial Law League of America, The International Association of Commercial Collectors, and the Insurance Accounting and Systems Association. For related articles, visit this page.

Some ways for businesses to avoid the debt trap

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The experts at Brennan & Clark LLC always find ways to help their clients manage their debts properly. Even if it is in their line of business to see successful debt collections through, they share ways to manage debt and the burden of financial obligations to the benefit of debtors.

1. Examine your capacity to pay

Think seriously about your capacity to pay off a loan. Somehow, it doesn’t make sense to incur a loan that requires you to pay $500 a month if your take-home pay is a mere thousand. Your new loan is just one obligation among many, which is the case for mostly anyone. Have a good look at all your current obligations before taking in another one to fulfill.

2. Make partial payments

You might have bitten off more than you could chew in your last loan. The experts at Brennan & Clark LLC are fully aware that this can happen sometimes. Whenever a full repayment is not possible, there is no shame in offering to pay in part. Certainly, it does not get you off the hook. However, when you explain your situation to the debt collectors and pay a partial amount, you avoid getting a bad reputation that can land a huge blow to your credit rating.

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3. Talk to your creditors

The best way to avoid going deeper into your hole is to talk to debt collection agencies when they come to your door. Once you overcome the shame of being in debt and start being open, you will find out that debt collectors are here to give you the best possible options that you can take for you to pay off your debt successfully at a pace that you are comfortable with.

A founding member of the Commercial Collection Agencies of America, Brennan & Clark LLC is committed to bringing unparalleled service to its clients. It offers highly specialized solutions to clients, crafting programs suitable for their specific needs. Visit this website for more information.

Debt settlement strategies for those experiencing a financial crisis

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Brennan & Clark LLC continues to inform readers on debt collection and settlement in light of the COVID-19 pandemic. For those who are experiencing financial challenges during this economic and health crisis, here are some strategies that can help.

Keep a debt log

The pandemic has brought a disruption in the livelihood of many people. However, it’s also important to stay on top of these matters so that a person can get back on track once resources become available. To do this, one must keep a debt log that will keep track of payments, interests, and collection notices. This is also good to have when in correspondence with collection agencies such as Brennan & Clark LLC.

Communicate

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Talking with creditors and collection agencies can be done in a courteous and convenient manner. Asking for debt validation, paying the minimum, seeking a debt settlement plan, and showing proof of one’s financial situation will allow these parties to provide a debtor with terms that will allow them to still pay their debts, even as they are trying to get back on their feet.

Manage spending

During these times, unnecessary purchases can lead to even more debt. For those who are already struggling with their finances, coming up with a budget will allow them to make the most of the resources they have left. Coming up with a debt settlement plan and working with collections agencies will allow those with outstanding debt to start prioritizing their payables just so they can start improving their credit score, which will benefit them in the future.

Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. For similar reads, head over to this page.

Can business credit improve during a global crisis?

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Qualifying for creditworthiness is incredibly important for small businesses. The past months have proven to be challenging for business owners, with governments implementing lockdown measures and industries putting a halt to selected operations. Keeping a small business afloat during uncertain times can be a tall order; what more improving its credit rating?

Business credit rating can improve even during a global crisis, notes collections agency Brennan & Clark LLC. Monitoring a business credit profile is something every small business owner must do with diligence. While easy to do and free of charge, many forget to forego this step. Businesses whose owners understand their credit rating are 41% more likely to be granted loans when they apply. Those with good business credit profile comprehension have an increased likelihood of expanding their venture.

Although credit has always been a huge deal, it will become tighter following global crises. Lenders may take a while before they re-enter the market. Consider payment terms from suppliers. These may not be loans, but these influence a small business’s credit and strengthen credit profile. Discount terms from suppliers can help keep paychecks regular even in tough times.

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Brennan & Clark LLC reminds everyone only to use the credit they need for making payments to agreed-upon terms accordingly. The option to borrow as much as one can during challenging times can be tempting. While some fall prey to the temptation, remember that the only good reasons to borrow money are to increase ROI, build business value, and maintain viability.

Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. Its expertise helps companies achieve well-defined goals for their collection process, evaluate all internal procedures, implement improvements, and guarantee better results in collections. Head over to this page to know more about Brennan & Clark LLC.

The main characteristics of a good debt collection agency

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Debt collection may be one tricky business, which is why it is no wonder that many debt collection agencies are resisted by so many individuals who have a lack of understanding. To level the playing field, Brennan & Clark LLC shares a few things which make for a good debt collection agency.

1. Good debt collectors are great listeners.

Whenever a debt collection agency approaches a debtor, they treat them as though they are clients. They make a nice impression because they approach their clients with a kind understanding. Nobody wants to be in debt, and for the most part, people who get into debt do so because circumstances force them into it. Good debt collectors offer a sympathetic ear to such clients.

2. They are also informative.

Debt collection agencies who do business can resist applying aggressive power play over debtors, even if they technically have the motivation to do so. The first option that they take is to educate their clients about the options that they can use to pay their debts. This way, they significantly decrease the chances of any clients showing hostility towards them and increase the chances for the debt actually to be settled.

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3. Good debt collection must include excellent tracing.

Particularly, quickly finding a defaulting client makes a debt collection agency competent at what it does. Accurate tracing saves a lot of time and effort, which could then be focused more on finding ways to facilitate debt payment. Tracking down defaulters sooner rather than later is always an advantage, as Brennan & Clark LLC attests.

Brennan & Clark LLC is a business collections agency based in Villa Park, Illinois, and was founded in 1980. The firm aids businesses get the most out of their accounts by collecting money at the right time and running an effective business system. To know more about debt collection, follow this Twitter page.

The debt settlement process: How will it affect personal credit score?

There are many reasons why an individual can ask to settle their past due accounts at a negotiated cost. Unexpected events such as the loss of a job, sickness, divorce, and other valid reasons can convince lenders to lower the amount one has to pay back. In some cases, some companies allow debt settlement for people who admit that they have lost control of their spending. Sometimes, creditors will look at a person's capability to pay before approving their request. The experts at Brennan & Clark explain how the debt settlement process can either make or break the credit score.

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Credit bureaus receive a report each month regarding an individual's accounts. They will see whether the debt was "settled," "paid as agreed," "paid in full," or "unpaid." According to the team at Brennan & Clark LLC, when a person doesn't pay the full balance, it can have a negative effect on their credit score.

On the other hand, settling debt such as credit card bills that are considered to still be in good standing along with other accounts might also affect a person's credit score negatively. For those who want to work on their scores even as they pay off debt, paying some accounts on time will help a person keep earning points.

For those who want to recover from piled up debt, prioritizing past due accounts can sometimes be the best option. Once these payables have sbeen settled, a person can start building up their score by being more responsible about using and paying credit.

Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. For similar reads, head over to this page.

A guide to getting out of debt even without enough funds

Paying off debts can be difficult, especially for those who have failed to manage their spending. When payables are more than one's income, it can be a challenge to prioritize payment. But for those who are struggling, the finance expert team at Brennan & Clark LLC shares some ways to start the journey to financial freedom.

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Come up with a budget

Failing to plan is planning to fail. When one sets out to pay off debt, it's good to have a budget that will prioritize needs over wants. It can also be a good way to reflect on one's spending habits. Having a budget for oneself or the household will help one prioritize and schedule payments.

Go for debt negotiation

Sometimes, unexpected life events can cause a person to miss out on other financial responsibilities. If this is the case, asking collectors and creditors for a debt negotiation will allow a person to lower the credit or even to have more time to complete their payment. While this might not benefit a person's credit score, the team at Brennan & Clark LLC share that negotiating amounts and schedule can help a person pay their debts bit by bit.

Seek help

Those who have a spending problem can seek help from their family and friends. Though they might not be able to give financial assistance, they can guide a person in other aspects as they do their best to settle their debts. On the other hand, seeking advice from finance professionals is a great way to get back on track with payments, budgeting, and savings.

Brennan & Clark LLC has expertise in achieving well-defined goals in the collection process and guaranteeing better results on collections. Visit this blog for more articles on debt settlement.

What can cause credit card debt

Approximately 4 out of every 10 households in the United States are dealing with debt, and Brennan & Clark LLC believes that for everyone to lower and ultimately terminate credit card debt, information is key. This is why, for the past few years, the firm has released a series of informative blogs to help businesses and individuals deal with debt and collections.

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According to Brennan & Clark LLC and a majority of financial experts, people who find themselves in debt do so because they fail to plan their spending. Aside from major loans for houses, cars, or school, it is faulty spending that leads to more money owed.

Compounding the problem even further is that far too many people enjoy the convenience of using credit cards way too much. The problem with using these nifty little temptations is that it usually is the snowball that starts at the top of the mountain. Once it gets rolling, once people start using their credit cards, interests begin to compound. And many credit card owners end up only paying for the interests, leaving the debt untouched.

While Brennan & Clark LLC mentions that the ideal course of action would be to pay off the debt and interest as soon as possible, most credit card holders do not make enough money to do so.

Another important point credit cardholders who are determined to pay off their card’s debts is that they need to be in touch with a financial advisor or firm to help them find other ways to settle accounts.

Brennan & Clark LLC is a business collections firm that has been in the industry for more than 30 years. With 150 years of collective experience, its team’s expertise aids companies in achieving well-defined goals for their collective process, evaluating all internal procedures, implementing improvements, and guaranteeing better results on collections. For more updates, visit this blog.

Common debt traps for business

A debt trap is a financial ploy that is designed to keep businesses in debt for them to continuously make money off people or establishments that are unable to clear their debt. Debt traps are often set by financial institutions like lenders who structure their business in such a way that they can exploit loopholes in consumer credit laws to avoid regulation. According to Brennan & Clark LLC, these establishments are technically legal, but they do pose a high chance of keeping people in debt due to their practices. Here are some of the most common debt traps for businesses.

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Payday loans: Whether you’re a single parent trying to make ends meet or the owner of a small business, payday loans are notorious for keeping their clients in debt. They do this by first charging an establishment fee of up to 20% and a monthly fee of 4% of the amount borrowed. So if you borrowed $1,000 from a payday loan creditor, they expect you to pay $1,240 within the next month.

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Blackmail security: It’s often policy for some creditors to have their lenders sign off on an asset to guarantee a loan. Usually, the items that are put up are more expensive than the loan itself so that when a loan defaults, the creditor can still make money off the asset. But according to Brennan & Clark, dubious security firms choose cheaper assets, but assets that are vital to your business. Besides this, they also have a steep minimum loan amount that could go as high as $2,000.

Brennan & Clark LLC is a business collections firm with over 30 years of experience. It maintains membership in the Commercial Collection Agencies of America. To read more about finance, visit this blog.

Keep that credit score up: More money-handling tips for business owners

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Business collections agency Brennan & Clark LLC has been sharing a lot of information on all things surrounding collections, debt, and credit in hopes that business owners everywhere will be well-informed. For today’s blog, the company explores a number of expert financial tips for entrepreneurs in order to keep their credit score up and reduce debt.


One of the rules of thumb for business owners is that they should never spend more than they should – unless it’s for expansion. In any case, especially for startups that have yet to experience solid and consistent cash flow, business owners need to mind their spending habits, Brennan & Clark LLC explains. Far too many businesses fail to pay their dues to creditors simply because they’ve continually spent above their budget.

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For bigger companies that have a huge workforce, Brennan & Clark LLC mentions that employee retention programs can go a long way in saving the company money. It’s long been established that hiring new workers to replace old ones is much more expensive than keeping employees who are already there.

Finally, the simple act of hiring a trustworthy and capable accountant (who can double as a financial advisor to help business owners keep all the spending in check) may be one of the wisest moves business owners can make.

A leader in the industry, Brennan & Clark LLC is a business collections agency based in Villa Park, Illinois, and was founded in 1980. Visit this page for more information about the company.