Able Tracers are Debt Collectors in Port Elizabeth. We have specialised in debt collection and apply professional and ethical strategies throughout the collection process.
We offer expert collection of unpaid debt of both high and low value from private individuals to commercial entities.
In this article we take a closer look at what exactly constitutes a debt, the different types of consumer debt as well as good vs bad debt.
Debt is a deferred payment.
It is typically a total amount of money or payment owed for services which have been borrowed or used by one party (debtor) from another (creditor).
The amount of money borrowed or the amount of money owed for services, usually comes with an arrangement which allows the debtor the opportunity to pay back the amount within a certain time-frame, usually with interest.
Debt can be on various credit terms. E.g. payment on delivery, payment on presentation of invoice, 30 days nett or 30 days from invoice.
In cases of rental - it is in advance. When tenants are already living in the rented home and fail to pay their rental on the 1st of the month, their debt is then incurred from the 2nd day of that particular month.
Good debt is generally considered an investment and can help you generate an income or add to your value as a potential employee.
Here are some examples of good debt:
Even though some good debt can have a negative side to it, there are certain types of debt that should be avoided at all costs.
Here are some examples of bad debt:
Some debts are necessary. However, before entering into an agreement with the relevant creditor, it’s important to understand the terms and conditions of the debt agreement.
Furthermore, bad forms of debt should be avoided in order to prevent yourself from becoming overindebted.
With 38 years of experience, our expert debt collectors in Port Elizabeth can assist you with efficient and successful debt collection. Our firm was established in 1965.
For more information about our debt collection services in Port Elizabeth, please contact us.
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