Of
course within the confines of both, you will find
both secured and unsecured. That is guaranteed with
some form of collateral and that which is based simply
upon a signature.
Within
the confines of Consumer debt or debt incurred by
the average American for personal, family or
household purposes, there are now a plethora of companies
advertising on the television and radio offering to
come to the aid of the poor consumer over burdened
with debt.
As far as we
can tell, 100% of those companies offering debt relief
are what as known in the industry as DEBT
CONSOLIDATOR. Other names that are common
in various state statute are Debt Adjusters, Debt
Pro-raters; Debt Counselors. Most, but not all
claim to be non-profit, whatever that means.
As far as we
can tell, 100% of them take more than five years to
do the job, are paid by the Creditor community whenever
possible and operate with a built in conflict of interest.
The common
DEBT CONSOLIDATOR,
puts the debtors on a plan, asks them to voluntarily
send in a large amount of money from which they first
take fees and costs and then what is left is supposed
to be distributed on a pro-rata basis to all the debtor's
creditors such that over time, all the debts are paid
off at 100% on the dollar. They also promise
to get the creditor to reduce the interest rates being
charged such that more of the money paid goes to principal
and less to interest. There is no guaranty that this
can be accomplished. They do not tell the debtor
that if the debtor calls and asks, more than likely
the debtor can get the very same interest reduction
simply by asking the bank him or herself (assuming
the bank will reduce the interest which today is very
very hard to get.).
Most of the
"Debt Consolidators" give examples in their commercials
where actors say that XYZ Company was able to cut
the amount of money being sent into the creditors
by at least half and at the same time, they are savings
thousands. Simply put, this makes absolutely
no sense. Unless every interest rate is eliminated,
what they promise cannot be done .
MOST
DEBTORS FALL OUT OF THESE TYPE PLANS BECAUSE THEY
DO NOT INVOLVE THE DEBTOR IN THE OPERATION OF THE
PLAN, THEY TAKE MUCH TO MUCH TIME, THE COSTS ARE
PROHIBITIVE AND OVER TIME, THE BALANCES DO NOT GO
DOWN, THEY CREEP UP. THEY SIMPLY DO NOT WORK UNLESS
THERE IS A MAJOR REDUCTION IN INTEREST.
We on the other
hand are simply DEBT
NEGOTIATORS. What is the difference?
The answer is that we do not collect the debtor =
s money and distribute it to the creditors. Our chief
function is not to cut interest. What we strive
to do is:
1. Put
the debtor on a very strict necessities of life budget;
2. Give the
debtor a means by which the debtor can track his income
and at the same time track his expenses such that
the debtor can learn how to be a better more careful
spender and at the same time save money which the
debtor can then put towards negotiated debt
settlements;
3. Work with
the creditor community one debt at a time to reduce
the balance due by pro-active negotiation based
upon an assessing the debtor's economic circumstances.
Most debt settlements at this time are running in
the 50% or better range depending upon the specific
bank.
We further
believe, and the numbers prove it to be so, that in
lieu of small payments over a very long time, a lump
sum, paid early and put to work by the creditor at
the creditors rate of return for invested capital
will over the same span of time that it would take
the debtor to pay off the account in small payments
at 100%, yield the creditor more money and a larger
net profit.
Our program
also builds customer satisfaction and loyalty as well
as working to get the debtor out of debt in the shortest
time possible. DEBT
NEGOTIATION REALLY WORKS.
In conclusion
let us tip our hats to Ameridebt, Carlyle, Debt-tronics
etc. and say thank you for your advertising efforts.
Thank you for bringing "debt" out of the closet and
to the forefront of peoples minds. Thank you
for allowing people to be OK with themselves in talking
about debt issues and seeking help.
What you have
done for the Debt Negotiation Industry is wonderful
and while your programs may not work, our debt negotiation
program does work and we have thousands and thousands
of completely debt free clients who have not only
become debt free in a relatively short period of time
but at the same time, saved anywhere from 20 to 40
and some times 50 cents on the dollar on the average
and who can attest to it; and for that we are grateful.
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