Consumer psychology and effective negotiation strategies. These two successful methods for effective communication with debtors are also the key to putting in place a good installment plan.

There can be many reasons why debtors have not paid their bills. They could have forgotten or perhaps been away on vacation. They may have a problem owing to the size of their debt. It can be especially diffi cult to get paid if the consumer is in debt to many different companies.

In Finland, experience has shown that motivational strategies produce good results. "For collection to succeed, it is important to understand why the debtor won't pay. We also have to set clear goals and motivate them to overcome any obstacles to paying," says Peter Lundin, head of debt surveillance in Finland.

To understand the debtor's actions and situation, Intrum Justitia utilizes modern methods that involve consumer psychology. The most commonly used methods are lifecycle psychology, social competence and motivation and transaction theory.

For example, Intrum Justitia in Finland has found that emotional arguments can be the best way to motivate payers. The goal is to get debtors to contact Intrum Justitia. When they do, motivation theory often plays a critical role in understanding how the debtor sees the future.

"Transaction theory helps us get a sense of how the person is dealing with his debt problem. Through training in social competence, we understand the debtors' feelings and motives and can adapt our communication accordingly," adds Peter Lundin.

On the whole, consumer psychology benefi ts debtors and Intrum Justitia's clients alike, and makes the work more stimulating for employees.