Debt Settlement Plan – Learn why I don’t offer a Long-Term Program and about your more reliable options
Just so you know, I offer one service: it’s Simultaneous Debt Settlement. Believe it or not, my company is the only debt settlement company in the country to just offer debt settlement in this specialized way. If you can’t generate funds to settle your debts right away, my service won’t be a solution to your problem. This means that the information I provide on my website is without bias.
Sharing my reasoning for not offering a long-term debt settlement program is not to convince you to enroll into my service. After all, why would anyone choose to settle their debts over a period of years if they could settle their debts right away?
No. My purpose is to fully educate you about the behind-the-scenes aspects.
Things that you would never know to think about or consider, since you’ve probably never been in this situation before. Things that most debt settlement companies won’t tell you about.
There are times when a long-term debt settlement approach makes sense. However, the set of circumstances that are involved in making a long-term debt settlement plan a logical option are few and far between. (To be more specific, long-term debt settlement should only be considered by people who qualify for a Chapter 13 bankruptcy and lack the ability to settle their debts fairly quickly).
I hope you find the information on my website insightful. It is based on roughly 20 years of experience from both sides of the fence…
My experience in Debt Collections…
I quickly learned that people who are behind on their debts want to pay their bills. And that the reason they don’t is simply due to the fact that they can’t afford them.
That’s why I started my company, so I could help people who normally couldn’t afford to resolve their past-due debts, do so.
Prior to starting Debt Relief á la carte I was in the collection industry. I started in collections when I was 19 years old. I held positions of Debt Collector, Collection Floor Manager, Corporate Trainer, and Director of Collection Operations.
I’ve worked for large third-party collection agencies, collection attorneys, and large debt buyers.
I’ve collected on credit cards, medical, dental, utilities, signature loans, auto deficiencies, apartment leases, and health clubs. I have a full understanding of the intricacies of each of these debt classes.
When I was in the collection industry, I took the exact same approach that I take today with my clients. I was reasonable and logical, I treated people the way I wanted to be treated myself, I made it a point to be as approachable and friendly as possible, and I took the time to understand each situation so I could play the role of problem solver rather than debt collector.
My collection career highlights:
My experience in Debt Settlement…
I started Debt Relief á la carte in January of 2002.
Because of my time in the collection industry and my experience dealing with debt settlement companies from the collection side of the fence, I identified that long-term debt settlement plans were generally unsuccessful and put consumers into an adversarial situation with their creditors with no real solution in sight.
Common sense probably tells you that your creditors won’t sit idle for years without any payments being made. I’m here to tell you that your instincts are correct.
Since 2002, I’ve limited my debt settlement services just to consumers who could settle their debts right away, because it’s the only reliable way to offer debt settlement.
Due to my approach my company has achieved the highest success rate in the debt relief industry.
What a startling contrast between the successful completion of debt settlement when offered as a long-term approach compared to when it’s conducted right away.
According to the FTC (Federal Trade Commission), less than 10% (page two, paragraph 1) of consumers who enroll into a long-term debt settlement program settle all of their enrolled debts.
Since my company’s inception, from 1/1/2002-9/25/2014, 88% of my clients have settled or entered into a payment arrangement on all of their enrolled accounts. View a breakdown of my success rates.
Please keep in mind, this difference has very little to do with me. The difference is because when you settle your debts right away, you don’t expose yourself to most of the risks and dangers that are associated with settling your debts over a long period of time.
It’s very likely that you don’t have the financial resources to settle all of your delinquent debts right away. If you don’t and your accounts are less than 6 months past due, the first thing you may want to consider is how many debts you can settle right away, and if re-aging (bring current, pay off normally through payments – option only available on pre-charged off accounts) the remaining accounts will lower your monthly expenses enough to solve your problem.
The advantages to this approach are: you will gain control over your finances by lowering your monthly bills, you will resolve your delinquencies and begin to recover, you will have active payment history reporting to your credit report (which in theory will help you rebuild your credit score more quickly), and you will avoid the risks that are associated with settling your debts over a long period of time.
Feel free to contact me and I will dissect your finances to see if this is an available option for you.
If the above 2 options won’t work for you and you desire to settle your accounts, I HIGHLY recommend that you explore do-it-yourself debt settlement.
I make this recommendation due to the premature representation aspects of being represented by a long-term debt settlement company to your creditors previous to being financially able to settle and because the high fees that are commonly charged by long-term debt settlement companies.
When you settle your debts over time, it’s important to settle them as soon as possible. If you are paying high fees, they will slow down your progress and prolong your exposure to the risks of settling your debts over time.
However, please be aware that you really don’t want to attempt debt settlement if it’s projected to take longer than 24 months. Ideally you want to do it in 12 months or less. If you have read all 4 parts to this series, you now know why…
You probably feel overwhelmed about the idea of settling your accounts on your own. But it’s not as daunting as it sounds and fortunately there are 2 excellent companies out there that I completely trust that offer training and coaching services to assist you with your do-it-yourself needs.
If you can’t settle your debts in 12–24 months or if you prefer to avoid the adversarial aspects of settling your debts over time, you may want to call your creditors and ask about a hardship plan, previous to your accounts charging off. Hardship plans are a form of DIY Debt Management. Click here to learn more.
If you would prefer to hire a credit counselor, I recommend credit card consolidation with Cambridge Credit Counseling Services.
These are your more reliable options for resolving your situation without bankruptcy. If none of the above options are within your financial abilities, I highly recommend that you make an appointment to speak with a bankruptcy attorney to become educated about how bankruptcy will work for you.
Your other option is to do nothing. However, there is a lot to contemplate if these are the two options that you’re forced to consider. Please see my article on how to talk to debt collectors to learn more.
I hope this 4-part series about debt settlement plans has helped you. Please understand, this is general advice and each situation is a little different. So please feel free to contact me with any questions you may have.