2024 Tax Season Debt Recovery Strategies

Seize the Moment: A Tax Season Strategy for Enhanced Debt Recovery 

Seize the Moment: A Tax Season Strategy for Enhanced Debt Recovery 

With the 2024 tax season on the horizon, it’s a pivotal time for businesses to reconsider their approach to outstanding debts. Professional Credit stands at the forefront, guiding our clients through a proven method that turns tax season into a period of significant financial recovery.

Why Now is the Time for a Settlement Strategy 

During tax season, many Americans find themselves with additional funds, partly thanks to state rebates like those from Oregon, which has announced one of the largest tax season kickers. Historical data and behavioral analysis reveal that when consumers receive a financial windfall, they are more inclined to address their debts. This trend is evident, as about one-third of taxpayers use their returns to reduce existing debt burdens. 

Our internal figures show a consistent uptick in recoveries during this period. The reason is straightforward: taxpayers are looking for efficient ways to utilize their refunds, and settling debts offers a tangible way to improve their financial health. 

When a discount is offered, it prioritizes that account in the consumer’s mind so that when they consider what debt to pay, the account with a settlement offer is at the top of the list.  

The Professional Credit Advantage: A Data-Driven Approach 

Professional Credit’s Tax Time Analysis has brought to light some compelling statistics. Clients who have embraced a 20% discount strategy have seen a threefold increase in revenue, amounting to $9.07 per letter within 180 days, as opposed to a mere $3.14 for letters without a discount. This significant boost in recovery is achieved by meeting consumers where they are, with a deal that benefits both parties. 

Examining the chart below, we can clearly see the long-term financial benefits of implementing a settlement program. Within a span of 180 days, the data illustrates that offering settlements can dramatically amplify revenue, boasting nearly a threefold increase. To put this into perspective, if the typical monthly recovery of a client’s debt collection account is $100,000 , with the implementation of a strategic settlement approach, we have the potential to elevate that recovery to an impressive $300,000

Your Role in Maximizing Returns 

Granting Professional Credit, the authority to negotiate tax-time settlements can dramatically improve the recoveries we secure for you. By offering a settlement option, you prioritize the resolution of outstanding balances and give consumers a compelling reason to choose clearing their debt with your organization. 

This approach doesn’t just expedite recovery—it also offers a sense of relief to consumers, allowing them to settle debts that have been accruing interest and affecting their credit scores. It’s a strategy that pays dividends, both financially and in goodwill. 

Preparing for Success 

As we approach the start of the tax season, now is the moment to put these discounts into action. Over 60% of Americans expect a tax return, and by aligning your strategy with this influx of funds, you position your business to capitalize on this annual financial milestone. 

Reach out Professional Credit Services today to discover how this strategy can be implemented seamlessly for your benefit. Let’s collaborate to ensure that this tax season becomes a period of unparalleled recovery and mutual benefit for you and your consumers. Schedule a consultation today.