Why your past-due customers aren't paying
How cognitive biases like avoidance can get in the way of good intentions
Key Takeaways
- Many past-due customers want to pay but face an intention-action gap.
- Cognitive biases like avoidance, present bias, and decision fatigue delay repayment.
- Behavioral science helps close the gap—using strategies like commitment devices, clear deadlines, and simplified options.
- Traditional collections that assume non-payment = unwillingness often backfire.
There's a frustrating reality in debt recovery: many customers want to pay but never actually do. They have good intentions, they may even open your emails and view payment options—but they don't follow through. This is the intention-action gap, and it's one of the biggest barriers to successful collections.
Understanding why this happens—and how to fix it—can transform your recovery rates.
What is the intention-action gap?
The intention-action gap is the disconnect between what people intend to do and what they actually do. In collections, it looks like this: a customer knows they owe money, plans to pay, but keeps putting it off until the situation worsens.
This isn't laziness or dishonesty—it's human nature. Our brains are wired to avoid discomfort, prioritize immediate rewards, and struggle with complex decisions. When you combine financial stress with these cognitive tendencies, payment becomes easy to postpone.
The cognitive biases that prevent payment
Avoidance behavior (The Ostrich Effect)
When people feel anxious or overwhelmed, they often avoid the source of stress entirely. For past-due customers, this means ignoring bills, deleting emails, and avoiding calls. They're not unaware of the debt—they're actively trying not to think about it.
Example: A customer receives a stern collection notice. Instead of opening it, they feel a knot in their stomach and set it aside "for later." Later never comes.
Present bias
Present bias is our tendency to prioritize immediate rewards over future benefits. Paying a bill today means less money now, even if it prevents bigger problems later. The future consequences feel abstract and distant.
Example: A customer has $200 available. They could pay their overdue bill, but they also want to go out with friends this weekend. The immediate enjoyment wins.
Decision fatigue
When customers face complex payment options or unclear next steps, they often do nothing. Too many choices—or too much fine print—creates paralysis. The easier path is to simply close the browser tab.
Example: A customer lands on a payment page with six different payment plans, each with different terms. Overwhelmed, they decide to "figure it out later."
How to close the intention-action gap
Reduce friction
Make the path to payment as simple as possible. One clear call-to-action. Few clicks to complete. No confusing jargon. Every obstacle you remove increases the likelihood of payment.
Use commitment devices
Help customers commit to paying before their intentions fade. This could be scheduling a future payment, setting up autopay, or agreeing to a text reminder. Once committed, people are more likely to follow through.
Create urgency (without threats)
Deadlines help counteract present bias. But the goal isn't to scare customers—it's to give them a reason to act today rather than "someday." Frame deadlines around positive outcomes: "Pay by Friday to avoid late fees and keep your account in good standing."
Lead with empathy
Customers in avoidance mode often feel shame. Harsh messaging reinforces their desire to hide. Empathetic, supportive communication makes it safer to engage: "We understand things can get complicated. Here's a simple way to get back on track."
The bottom line
Traditional collections often assume that non-payment means customers are unwilling or unable to pay. But the intention-action gap tells a different story: many customers genuinely want to resolve their debts but are blocked by cognitive barriers.
By understanding these barriers and designing outreach that works with human psychology—not against it—you can help more customers follow through on their good intentions. The result? Higher recovery rates, better customer relationships, and a collections strategy built on behavioral science rather than guesswork.
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