Do not weep. Do not wax indignant. Understand. ― Baruch Spinoza
A lot of my time at present is spent helping with arrears and collections. In a world that is experiencing the pressures and hardships of debt and arrears at unprecedented new levels there are two items worth sharing that I hope might make life a little more bearable; regardless of whether you stand in the shoes of the creditor or the debtor:
Firstly: Make compromise and resolution the goal. Clearly define your financial capability and use this to demonstrate your boundaries. Do so in the recognition that the maintenance of the relationship is your primary interest. To express this effectively you will need to understand what a good outcome is for the other party. This shouldn't influence how you establish your boundaries, instead it allows you to express yourself more clearly, in terms that convey greater meaning and relevance.
Secondly: Promote the significance of timing. Identify the issue early, as the range of available solutions diminish as time passes. There are always distinct milestones, which, as they pass, become critical events, changing boundaries. The more clearly these timescales are articulated the more quickly a path towards resolution can be acknowledged and pursued. Only then can you expect to avoid, and help enable the avoidance of, the negative consequences of these events.
These two items form the basis of every relationship, in one way or another. They also inform how new forms of predictive and intelligent technology are best applied; in ways that positively enrich the relationship, as opposed to inadvertently undermining it.
Instead of focusing on maximising speed we have the opportunity to develop new ways of minimising risk and preventing critical events from occurring in the future.
The results and rewards to be gained by sharing accurate information, driving improvements in engagement, communication and understanding, also enable the development of more constructive and sustainable relationships. The methods, policies and models we choose to help us navigate through this current crisis, supporting our families and our businesses in exiting debt and becoming more financially resilient, should move us away from the poor practices of the past, to bring us all closer together.