Dealing With Debt: Debt Settlement

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If there’s one thing Americans seem to have in common, it’s debt.

“It was very, very disturbing to me. I was harrassed by the credit card company, the bank. I wasn’t sure how I was going to pay it off and still pay all my bills.”
-(Asked not to be identified)

The way this woman… who asked not to be identified… dealt with her debt was debt settlement: offering to settle a debt for less than what’s owed.

“It really only took a few phone calls. And we had reduced that debt, which was over $18,000 to a little over 5 thousand… I think it was $5,400.”
-(Asked not to be identified)

This is the company she hired for help: one of many offering to negotiate with creditors to get them to accept a lump sum of less than what’s owed.

And if you don’t have the lump sum? These companies want you to stop paying your bills and send them the money instead until you save enough to settle your debts. And that’s where debt settlement gets controversial.

“The controversy lies in the fact that there are companies that are doing this unethically. The way they charge the clients very front-end loaded fees.”
-Matt Sheldon, Credit Heaven

In other words, some companies take hundreds of dollars in fees up front… and many get away with it since this business is largely unregulated.

“Like any other industry, there are bad apples. This one in particular has attracted a lot of them because they are praying on people at their weakest moment.”
-Matt Sheldon, Credit Heaven

Bottom line? Just like bankruptcy and debt counseling, debt settlement does have a place in destroying debt. However, it’s a place you have to be especially careful. Ask lots of questions, be super-careful of upfront fees.

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  • http://www.merchleads.com/ Rich Preisig

    Offering Debt Settlement With No Monthly Service Fees Can Spring Board Your Core Business For Years To Come.

    By Rich Preisig

    Gain Your Clients’ Ongoing Trust With No Monthly Service Fees

    If your core business is mortgage services, loan modification, credit repair, or if you’re an attorney, accountant or adviser just offering debt settlement to your clients because it’s in vogue right now, be sure to preserve your reputation by not offering debt settlement with extra monthly maintenance fees or service fees.

    Rich Preisig states, “it’s so gauche (adjective: lacking social grace, sensitivity and tact), and it can really make you look like you steal money for a living from people who are already down on their luck.”

    In fact, by presenting debt settlement to your client as a suitable option, you will more likely gain their business and ongoing trust by explaining that you want their ongoing business (mortgage, credit repair, real estate services, etc.), and this is just one way you are looking out for them.

    Out of the gate, your agents are advising their clients that they’ll be saving them at least $1,800 in monthly maintenance and service fees; “junk fees” otherwise charged by competing debt settlement companies that make the payback from the client rise from 15% to 22%. This is where the deal begins not to make sense.

    Let’s face it, it’s hard enough to get a client, and this is a perfect opportunity to build a relationship whereby you can now add them to your core business services.

    Your customer acquisition cost of attaining this new client lessens with every new service you bring them and when they successfully complete the next service you have to offer them.

    This cost-conscious mentality provides you with a self-propagating business after a while; clients are now calling in, referring your business to friends and family.

    This is all common sense, but what isn’t common sense is throwing your own reputation under a bus by working with a debt settlement company that charges your clients monthly service fees and monthly maintenance fees. Ironically, you’re not even getting compensation (or very little of it) from these unnecessary fees, but you sure have a whole lot more explaining to do; specifically, “full disclosure” to your client that these extra monthly junk fees add up to 7% or higher, bringing their overall cost to settle their debt to not 15%, but 22%.

    Here’s the play: “Mr. Smith – It looks like debt settlement is your best option … and certainly many others have said the same; but I’m fairly sure no one has come to you, stating upfront that just like every other debt settlement company, we’re going to settle your debt for a fee of 15%, but we are not going to charge you any monthly service fees, which generally add up to an additional $1,800 that you would have to pay another company.”

    Time and time again, a new industry pops up, times are rough, and you just “want” there to be success in another business model. However, this is not the time to be taking short cuts in life and getting caught up so quickly in the hype. Slow down and realize that if you are charging your clients monthly service fees or maintenance fees, they’re paying significantly more money, and the program you’re recommending begins to not make sense.

    When your service begins to not make sense, you are then the one holding the red flag!

    More importantly, when you work with a proper debt settlement company that doesn’t charge your/their clients these monthly service fees, you are likely to find your prospective clients reacting far differently than if you are only equipped with the same old pitch every other debt settlement company in the industry has.

    What makes your debt settlement office different? What prevailing characteristics really give your debt settlement agents a competitive edge?

    It’s factual and it’s proven that if you present your clients with debt settlement, accentuating the hidden value that only your company has to offer as a debt settlement company with no maintenance fees, service fees, zero “add-ons”, your agents will close more deals every month. What do you think? Do you want to close more deals?

    Immediately, you will get referrals, and people will drop out of one program and switch to yours. The positive results of offering debt settlement with no monthly fees are immeasurable.

    You can now recruit more professional and well-spoken phone pros that can close 2 to 3 deals a day with the right program to offer. Furthermore, you can paint a bigger picture for these more advanced phone sales agents, as they now have the opportunity to build a rapport with each client they start working with in a debt settlement program.

    The results are immediate and have the power to rejuvenate your entire board room of agents. Furthermore, you can start thinking about how to introduce your client to another service, now that you have earned their trust.

    Thank you for reading my article – Richard Preisig – aka Rich Preisig

  • http://www.merchleads.com Rich Preisig

    Offering Debt Settlement With No Monthly Service Fees Can Spring Board Your Core Business For Years To Come.

    By Rich Preisig

    Gain Your Clients’ Ongoing Trust With No Monthly Service Fees

    If your core business is mortgage services, loan modification, credit repair, or if you’re an attorney, accountant or adviser just offering debt settlement to your clients because it’s in vogue right now, be sure to preserve your reputation by not offering debt settlement with extra monthly maintenance fees or service fees.

    Rich Preisig states, “it’s so gauche (adjective: lacking social grace, sensitivity and tact), and it can really make you look like you steal money for a living from people who are already down on their luck.”

    In fact, by presenting debt settlement to your client as a suitable option, you will more likely gain their business and ongoing trust by explaining that you want their ongoing business (mortgage, credit repair, real estate services, etc.), and this is just one way you are looking out for them.

    Out of the gate, your agents are advising their clients that they’ll be saving them at least $1,800 in monthly maintenance and service fees; “junk fees” otherwise charged by competing debt settlement companies that make the payback from the client rise from 15% to 22%. This is where the deal begins not to make sense.

    Let’s face it, it’s hard enough to get a client, and this is a perfect opportunity to build a relationship whereby you can now add them to your core business services.

    Your customer acquisition cost of attaining this new client lessens with every new service you bring them and when they successfully complete the next service you have to offer them.

    This cost-conscious mentality provides you with a self-propagating business after a while; clients are now calling in, referring your business to friends and family.

    This is all common sense, but what isn’t common sense is throwing your own reputation under a bus by working with a debt settlement company that charges your clients monthly service fees and monthly maintenance fees. Ironically, you’re not even getting compensation (or very little of it) from these unnecessary fees, but you sure have a whole lot more explaining to do; specifically, “full disclosure” to your client that these extra monthly junk fees add up to 7% or higher, bringing their overall cost to settle their debt to not 15%, but 22%.

    Here’s the play: “Mr. Smith – It looks like debt settlement is your best option … and certainly many others have said the same; but I’m fairly sure no one has come to you, stating upfront that just like every other debt settlement company, we’re going to settle your debt for a fee of 15%, but we are not going to charge you any monthly service fees, which generally add up to an additional $1,800 that you would have to pay another company.”

    Time and time again, a new industry pops up, times are rough, and you just “want” there to be success in another business model. However, this is not the time to be taking short cuts in life and getting caught up so quickly in the hype. Slow down and realize that if you are charging your clients monthly service fees or maintenance fees, they’re paying significantly more money, and the program you’re recommending begins to not make sense.

    When your service begins to not make sense, you are then the one holding the red flag!

    More importantly, when you work with a proper debt settlement company that doesn’t charge your/their clients these monthly service fees, you are likely to find your prospective clients reacting far differently than if you are only equipped with the same old pitch every other debt settlement company in the industry has.

    What makes your debt settlement office different? What prevailing characteristics really give your debt settlement agents a competitive edge?

    It’s factual and it’s proven that if you present your clients with debt settlement, accentuating the hidden value that only your company has to offer as a debt settlement company with no maintenance fees, service fees, zero “add-ons”, your agents will close more deals every month. What do you think? Do you want to close more deals?

    Immediately, you will get referrals, and people will drop out of one program and switch to yours. The positive results of offering debt settlement with no monthly fees are immeasurable.

    You can now recruit more professional and well-spoken phone pros that can close 2 to 3 deals a day with the right program to offer. Furthermore, you can paint a bigger picture for these more advanced phone sales agents, as they now have the opportunity to build a rapport with each client they start working with in a debt settlement program.

    The results are immediate and have the power to rejuvenate your entire board room of agents. Furthermore, you can start thinking about how to introduce your client to another service, now that you have earned their trust.

    Thank you for reading my article – Richard Preisig – aka Rich Preisig

  • http://moneytalks olga gevara

    would you be able to refer a good Debt settlement co..

  • http://therealdeal777.blogspot.com/2009/08/two-ways-of-dealing-with-debt.html The Real Deal Debt Guide

    Great site! Very well written article.

  • http://therealdeal777.blogspot.com/2009/08/two-ways-of-dealing-with-debt.html The Real Deal Debt Guide

    Great site! Very well written article.

  • http://www.debt-settlement-negotiation.com/ jackfleming

    Debt settlement program Debt Negotiation Program Bankruptcy, credit crad debt or any kind of debt will be settled with the apropiate Debt Management Program. Negotiating over the price of a purchase could be called Debt Negotiation, and a few people realize there is a debt solution that puts you in the ball game and levels the playing field between you and your creditors.

  • http://www.debt-settlement-negotiation.com jackfleming

    Debt settlement program Debt Negotiation Program Bankruptcy, credit crad debt or any kind of debt will be settled with the apropiate Debt Management Program. Negotiating over the price of a purchase could be called Debt Negotiation, and a few people realize there is a debt solution that puts you in the ball game and levels the playing field between you and your creditors.

  • Florence

    So funny Rich, you have a history of cheating people, now all of a sudden you want to help people. Why don’t you say what the truth is. For those reading this stay away from Richard Preisig, he is a crook and a criminal.

  • Florence

    So funny Rich, you have a history of cheating people, now all of a sudden you want to help people. Why don’t you say what the truth is. For those reading this stay away from Richard Preisig, he is a crook and a criminal.

  • http://debtsettlement386.vox.com/ Alen

    just learn how to manage your own finances and pay off debts without spending more money on another company who is supposed to do what people need to do for themselves.

  • http://debtsettlement386.vox.com Alen

    just learn how to manage your own finances and pay off debts without spending more money on another company who is supposed to do what people need to do for themselves.

  • olga gevara

    would you be able to refer a good Debt settlement co..