I agree with all the above opinion but just want to extend some information.
It is true that it is no point going for legal action on something less than $10 dollar or even less than $100 dollar in the hosting industry. First of all, your customer may not even be in the same country as you, if you have international customers. Legal action cross border can be very costly. Even if they within your same city you can sue them in local court, but this does requires filing fees. The time you spend at court and such does not warrant the financial gain from a judgement that is in your favour. However you can take several precaution to reduce the amount that people may own you, some call this as minimise your damage in situation where bad event can occur.
In the term of service you can say that a customer account can be shutdown within 3 days of a none payment. Any files, software that store on the server that belong to a none payment account are irretrievable unless they pay back what they own you. Most paying customer that are financial reliable will not mind this, they will most likely pay their bill on time. Do give people the option to restore their account though when they do pay their full owning amount.
In the event where it is one year term contract, it is best that you collect the cash payment first if the total price is less than $200 dollar.
There is a third option. If you have plenty of default accounts that had been defaulted for a very long time, and you also have all the necessary documentation to claim those people did indeed own you debts. You can sell the default debt portfolio to a collector agency. They may buy it at about 10% - 30% of it's value. The cheap price that they pay is due to the fact that it is a very risky business buying out debt portfolio, they themselves the collector may not even be able to recover the debts.
