Step 1 - How old is the account? The older the account is, then the less likely it is to collect.
So the best thing to do is see how old it is.
If it is under 90 days old, then you can try to collect without a collection agency.
You still have leverage at this point.
If it is older than 90 days, then it is better to give the account to an agency.
Just looking at the numbers, a collection agency will have a better chance to get your money back.
Step 2 - Decide who will handle the debt.
If you will go after it then move to step 3.
If you think a collection agency will handle the debt then it is best to choose the right one for your needs.
Search for local companies because the laws change depending on which state you live in.
Then look for companies that specialize in your industry.
Different industries use different language and the more a company understands the industry and the language used in it, then the more likely they are to collect for you.
Step 3 If you decide to contact the debtor yourself, make sure you document all of the communication.
Even if the debtor does not respond, make note of the attempted communication.
You can use this as leverage later on.
Call, write, email, or use any type of communication means you can.
The squeaky grease gets the wheel as they say, and this is just as true in debt collection.
Make contact and try to keep emotions out of the communication.
Be as direct and manner of fact as possible.
Threaten legal action and also credit history penalties.
These are motivating forces that most debtors want to avoid.