Using Your Tax Refund To Repay Debt: Taking a Consumer-Centric Approach

By on January 23rd, 2018 in Debt Collection, Industry Insights

How appropriate is it that the Tax Season starts on December 31st?  The day before so many of us gear up for our New Year’s resolutions, often involving some sort of fitness goals or better eating habits, but sometimes the best intentions can fall flat, according to US News 80% of New Year’s resolutions fail by mid-February.

There are clear similarities between the mindset that will help you to achieve your fitness goals and the one required to pay off a debt successfully. It’s all about pacing yourself and setting realistic expectations in the beginning. If you set an over-ambitious goal and aim too high, there’s a greater chance that you will quickly become disheartened and abandon your campaign. By setting a steady pace and you will feel accomplished, motivated to keep going, with a much greater likelihood of a positive long-term outcome.

Set realistic goals   

We know you that many of you intend to use your tax refunds to pay down your debt. According to a survey conducted by Credit Karma 62% or those surveyed expect to get a tax refund, and 40% of those plan to spend the money to pay down their debt.  We want to help you be successful, and help turn your intentions into actions.  TrueAccord will start the conversation early, using positive and encouraging content to motivate you towards getting started. We know you have choices to make, and we know that by building trust and creating a positive conversation we can help you to get started with your repayment process, and towards your better financial future.

TrueAccord approach

TrueAccord is leading the way in providing new, easy, digital, customer-focused ways for debt collections process.  We are building a process that fits your needs.  But even when you do want to pay it off, it can be really hard to get started.  You may feel overwhelmed, fear it will take forever, after all, average credit card rates today are around 12.5%, significantly adding to the length of time and payment amounts. This is where the flexibility of payment plans and the best digital user-experience sets us apart from any other collections process you may have experienced.

The power of positive communications and UX

We’re not like traditional, old-fashioned agencies who turn up the heat by making more calls and sending more letters. This is not a user experience that will motivate people to take action, in fact, it can do quite the opposite.

TrueAccord starts the conversation as early as December, building on your own intentions and keeping debt repayment at the top of your mind.  We focus on encouraging messages personalized to individual situations, with the built-in flexibility needed to figure out what will work for each consumer.  And we give you the tools that make it fast and easy to repay, with on-demand access to a personalized dashboard via a mobile phone, tablet or desktop. It’s part of our mission to redefine the debt collection process by making it more personal and user-friendly.

Choices for a personalized approach 

TrueAccord offers a variety of payment plans on a regular basis, and during the tax season, we test more options to give you more ways to get engaged.  Some of you may pick to pay a larger sum up front and then smaller amounts going forward, or you may set up the first payment in advance of the refund day, or start out with smaller amounts and gradually increase over time. We test different messages and offer a variety of options to see what works; it’s all part of the personal approach. Again, the similarities with a New Year fitness campaign are compelling. Everybody has a different target and a variety of ways and means to get there. But as long as you feel better, fitter and happier with your financial world by the end of the process, we’ll be happy too.

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