Collecting debt from creditors is time-consuming and it can be draining. To avoid hassles that come with debt collection, many businesses and individuals are opting to hire debt collectors to help them with debt recovery. With many businesses and individuals defaulting on debt repayment, the demand for debt collectors is high. As such, debt collection is a profitable business in Australia.
It would be best to work with a debt collection agency or start your own agency if you wish to become a debt collector. Here, you are going to learn how to become a debt collector Australia.
What are the Roles of a Debt Collector Australia?
The following are some of the roles debt collectors play:
- Assist businesses and individuals collect debts owed to them
- Contact the debtor via phone, mail, or in person
- Investigating financial reports
- Organizing alternate payment arrangements
- Negotiating payment plans
- Handling clients' requests
How Do I Become a Debt Collector in Australia?
To become an accredited debt collector in Australia, you need to follow these simple steps:
1. Get Training
To become a debt collector in Australia, you need to get some training first. Debt collectors should get training in credit management. Credit management course takes between 1 and 2 years to complete. To become a qualified debt collector, it would also be wise that you enroll in an internship to gain some experience before you can assume the role of a debt collector.
2. Get a Certificate or Bachelor's Degree
Getting a certification or bachelor's degree is not compulsory but it is an added advantage and makes you more competitive. Besides, the degree will help you do comprehensive research on debtors’ history. Some of the certifications you need include Certificate III in Investigative Services which takes only six months to complete.
3. Get Licensing
To become a doesn’t collector in Australia, you also need to get licensing. Debt collection is licensed and regulated by ASIC and ACCC. This is to ensure that debt collectors operate within the Law. You may need specific licensing depending on the state you intend to work. To get licensing, you must be at least 21 years old.
Also read: Do millionaires pay off debt or invest?
4. Apply for Debt Collection Job
Once you have debt collection licensing, the other thing you need to do is to apply for a debt collection job. You need work experience and qualifications to apply for this role. You need to write a resume and include your qualifications and experience.
Clients normally look for employees with experience and academic qualifications. You may need to work with a debt collection agency to increase your chances of getting a debt collection job.
Necessary Skills to Become a Debt Collector
You need the following skills are necessary to become a debt collector in Australia.
1. Problem Solving
One of the skills debt collectors require is problem-solving skills. Debt collectors need to offer solutions to their clients about how to recover money on their behalf. As such, they need to find the best ways to negotiate payment plans.
Debt collectors also need to have efficient communication because they will be communicating with clients and debtors from time to time. They need to find the best ways to communicate with debtors and convince them to repay their debts.
Negotiation skills are very important when it comes to debt collection. One of the roles of debt collectors is to negotiate payment plans and that’s why they need to have negotiation skills.
Sometimes it takes longer than expected for debtors to repay their debts. Not because they want to, but most time because they don’t have the money. As such, as a debt collector, you need to be patient with debtors while collecting debts.
Also read: How to make money buying debt.
Integrity is a critical virtue for debt collectors. You must abide by the Australian Law governing debt collection. You need to examine your morals and ethics, tell the truth and be honest with your work and the people you work with.
Summary of How to Become a Debt Collector
To become a debt collector, you need training, certification, and licensing. You can then apply for a debt collection job with a debt collection agency or open your own agency. You need to have skills like communication, patience, integrity, and negotiation skills to be a debt collector. Debt collection is a good business to start in Australia.