TCM BELGIUM LETS INTERN WALK A TIGHTROPE: MEET TIM DEBOES (PART 2)

In the first part of his interview, Tim explained to us how his internship at TCM had helped him to better understand the balance between ethics and economic health. The interview continues below.

In VRT’s new program “Caring for mom” (a Flemish TV channel), six mothers show and explain to viewers what it’s like to live in and with poverty. One of the speeches caught my attention because I had similar thoughts in the past: “She says she is poor, but there is a 19 m3 swimming pool shining in the garden. Should she not use her money elsewhere? ” People seem very quick to judge someone in debt, and especially to think that they would never find themselves in such a situation or that they would handle the situation much better.

• What do you think after your research? For example, I know you have read the paper on poverty by Eldar Shafir and Sendhil Mullainathan.

I understand both your reaction and the purchase of the pool. Spending money rationally doesn’t seem like a good choice, but on the other hand, it may be less irrational than you might think. Shafir and Mullainathan’s theory taught me that reacting to situations is contextual. And until you know the whole context, you can’t judge.

In this case, the pool turned out to be second-hand and the kids really enjoyed it. It was bought for the children, and what was spent there could not be easily taken away by creditors.

I don’t want to sound pedantic or analytical, but it suggests the “tunnel vision” where the options (offered by the wide vision) have disappeared. People experiencing poverty experience scarcity in many areas, and this is just as typical. Because of this shortage, there is little room in the reasoning to consider other options (eg paying bills).

If you can’t think about tomorrow, it’s unrealistic that you could anticipate what you’re going to pay in three weeks. For our industry, it may be useful to send pre-due reminders (before the due date). They cannot be sent too early because they have less effect. Sent too late, they arrive when the money has already been spent.

The theory of scarcity broadened my thinking about poverty. Scarcity creates a frame for behaviours and goes much further than I had imagined. I also don’t think there is a one-size-fits-all solution for getting people out of this tunnel vision, but there must be room for improvement.

• Do you think poverty is a social and / or political problem? Or an individual problem? What could change at the political level to better help people living in poverty?

Obviously, you should not “live beyond your means” as they say, but on the other hand, life is expensive and you sometimes have to go into the red. Consider, for example, the case of a mortgage loan.

It is especially important to calculate choices. And for these choices to be better founded, they should be taught at school. Why not reintroduce education to everyday life? A course that explains how to best manage your finances, but also how to iron clothes or cook an egg. It sounds so trite, but these basic skills are no longer taught to teens.

I also think that we must assume a greater political responsibility than today. Many politicians, who use poverty as a propaganda tool to recruit votes, have absolutely no idea what they are talking about and the implications of their proposals. For example, they readily hammer that they are against debt collection and the associated costs, but do not even know that collection costs are already prohibited in Belgium. The initiatives they propose often entail added costs for debtors. Perhaps they could take the time to listen to what debt collection, but also other providers have to offer. The slogans spread by our politicians always seem promising, but too often turn out to be hollow.

• In your opinion, what is the impact of unpaid invoices on businesses? Before your experience at TCM Belgium, had you ever thought about the pressure of unpaid invoices on creditors?

I hadn’t thought about the pressure of unpaid bills because I just think it’s a very strange idea not to pay something.

I now also understand why it is necessary for creditors that fees and interest be paid in the event of late payment, it is simply a waste of time and treasury that must be compensated to the creditor.

It’s particularly strange that people get excited so often when asked to pay for fees and interest. I guess because it’s just not “established”? Everyone has already returned a book late to a library and had to pay a fine. And you are taught, at a very young age, to bring back your books on time or pay a fine. In the event of unpaid invoices, the costs and interest are included in the “small print” but unfortunately less in habits and education.

• How can companies manage their delinquencies ethically while ensuring they remain economically sound?

I think companies don’t have the time to properly deal with all unpaid invoices. So, outsourcing seems to me to be the appropriate route, both ethically and economically.

Thanks to collection, an amicable solution is always sought in the first place, which guarantees cost savings for both the debtor and the creditor. And the latter does not waste time dealing with these problems. He can therefore concentrate on his main activities.

• Your internship comes to an end; what will you take away from this experience? What could be useful in your future professional occupation? And in life?

I’m a very introverted person, so this experience pushed me out of my comfort zone. During this internship, I was in contact with many people from different cultures every day. It improved my communication skills (and also my language skills).

My view of the world has widened. I have fewer prejudices.

And I’ll be careful never to get a call from a collection agency in the future! 😊 I don’t want to disturb people and I would be sorry if I didn’t keep track of my finances properly.

Thanks for your time and your work, Tim!

TCM BELGIUM LETS INTERN WALK A TIGHTROPE: MEET TIM DEBOES (PART 2)

In the first part of his interview, Tim explained to us how his internship at TCM had helped him to better understand the balance between ethics and economic health. The interview continues below.

In VRT’s new program “Caring for mom” (a Flemish TV channel), six mothers show and explain to viewers what it’s like to live in and with poverty. One of the speeches caught my attention because I had similar thoughts in the past: “She says she is poor, but there is a 19 m3 swimming pool shining in the garden. Should she not use her money elsewhere? ” People seem very quick to judge someone in debt, and especially to think that they would never find themselves in such a situation or that they would handle the situation much better.

• What do you think after your research? For example, I know you have read the paper on poverty by Eldar Shafir and Sendhil Mullainathan.

I understand both your reaction and the purchase of the pool. Spending money rationally doesn’t seem like a good choice, but on the other hand, it may be less irrational than you might think. Shafir and Mullainathan’s theory taught me that reacting to situations is contextual. And until you know the whole context, you can’t judge.

In this case, the pool turned out to be second-hand and the kids really enjoyed it. It was bought for the children, and what was spent there could not be easily taken away by creditors.

I don’t want to sound pedantic or analytical, but it suggests the “tunnel vision” where the options (offered by the wide vision) have disappeared. People experiencing poverty experience scarcity in many areas, and this is just as typical. Because of this shortage, there is little room in the reasoning to consider other options (eg paying bills).

If you can’t think about tomorrow, it’s unrealistic that you could anticipate what you’re going to pay in three weeks. For our industry, it may be useful to send pre-due reminders (before the due date). They cannot be sent too early because they have less effect. Sent too late, they arrive when the money has already been spent.

The theory of scarcity broadened my thinking about poverty. Scarcity creates a frame for behaviours and goes much further than I had imagined. I also don’t think there is a one-size-fits-all solution for getting people out of this tunnel vision, but there must be room for improvement.

• Do you think poverty is a social and / or political problem? Or an individual problem? What could change at the political level to better help people living in poverty?

Obviously, you should not “live beyond your means” as they say, but on the other hand, life is expensive and you sometimes have to go into the red. Consider, for example, the case of a mortgage loan.

It is especially important to calculate choices. And for these choices to be better founded, they should be taught at school. Why not reintroduce education to everyday life? A course that explains how to best manage your finances, but also how to iron clothes or cook an egg. It sounds so trite, but these basic skills are no longer taught to teens.

I also think that we must assume a greater political responsibility than today. Many politicians, who use poverty as a propaganda tool to recruit votes, have absolutely no idea what they are talking about and the implications of their proposals. For example, they readily hammer that they are against debt collection and the associated costs, but do not even know that collection costs are already prohibited in Belgium. The initiatives they propose often entail added costs for debtors. Perhaps they could take the time to listen to what debt collection, but also other providers have to offer. The slogans spread by our politicians always seem promising, but too often turn out to be hollow.

• In your opinion, what is the impact of unpaid invoices on businesses? Before your experience at TCM Belgium, had you ever thought about the pressure of unpaid invoices on creditors?

I hadn’t thought about the pressure of unpaid bills because I just think it’s a very strange idea not to pay something.

I now also understand why it is necessary for creditors that fees and interest be paid in the event of late payment, it is simply a waste of time and treasury that must be compensated to the creditor.

It’s particularly strange that people get excited so often when asked to pay for fees and interest. I guess because it’s just not “established”? Everyone has already returned a book late to a library and had to pay a fine. And you are taught, at a very young age, to bring back your books on time or pay a fine. In the event of unpaid invoices, the costs and interest are included in the “small print” but unfortunately less in habits and education.

• How can companies manage their delinquencies ethically while ensuring they remain economically sound?

I think companies don’t have the time to properly deal with all unpaid invoices. So, outsourcing seems to me to be the appropriate route, both ethically and economically.

Thanks to collection, an amicable solution is always sought in the first place, which guarantees cost savings for both the debtor and the creditor. And the latter does not waste time dealing with these problems. He can therefore concentrate on his main activities.

• Your internship comes to an end; what will you take away from this experience? What could be useful in your future professional occupation? And in life?

I’m a very introverted person, so this experience pushed me out of my comfort zone. During this internship, I was in contact with many people from different cultures every day. It improved my communication skills (and also my language skills).

My view of the world has widened. I have fewer prejudices.

And I’ll be careful never to get a call from a collection agency in the future! 😊 I don’t want to disturb people and I would be sorry if I didn’t keep track of my finances properly.

Thanks for your time and your work, Tim!