Online Financial Tips

It’s the same old song and dance; the guy that was selling insurance last week is offering debt settlement this week and the woman who was selling real estate is now offering loan modification. Those on the front lines of erecting these offices so that another Industry can flourish; kudos to you, as those in the know, know it’s not easy.

Recently and most noticeably has been the explosive growth and opening of debt settlement affiliate net branch offices. And interestingly, these same salespeople are filling these offices, and they’re making $75,000 – $200,000 in commission income, as they bailout the people with overextended credit card debt and other unsecured debt.

If you too, are looking to offer debt settlement to your clients, and you should, as there is real money in it, it makes sense to learn how the Industry works, as knowledge is king. See what’s out there and what works for you. See which company is consistent and thorough, easy to communicate with and is truly interested in your offices’ growth.

For many of you who have come into the Industry from the mortgage industry or loan modification industry, it’s the same as having multiple lenders to source your loans to. Don’t be naive and fall in love with only one debt Settlement Company, as you’ll unknowingly find that you’re missing a lot that’s going on around you in the Industry as a whole, never mind a better payout or better track record of Client retention.

Client retention in this Industry is paramount; far more important than your office payout because if a Client doesn’t finish the program, you’re not getting paid anyway. Remember, when the Client stops paying, you stop getting paid. Client retention is so important that soon, many of the offices with over inflated upfront fees and less than a 70% Client Retention rate will be viewed by T.A.S.C. as purely marketing companies with no overall concern for the Client. And for those in the know, it’s becoming an attorney only industry.

T.A.S.C. The Association of Settlement Companies is the Industry’s only association governing debt settlement companies. If the Company you’re working with is not overseen by T.A.S.C., you’re probably not with a “real” debt settlement company, but rather a derivation of a marketing company.

And with State Attorney General Andrew Cuomo recently stating that “Companies in the debt settlement industry often prey upon consumers who find themselves unable to keep up with credit card payments during these difficult economic times,” it’s important to understand what Companies are performing morally and ethically and are in it for the long haul. Again, client retention should be key in your decision making of what Company you choose to go with.

First and foremost, any Company that is willing to offer your debt settlement office aggressive upfront commissions is likely to be out of business or put out of business shortly.

Let’s take a closer look at what’s happening. Customers agreeing to settle their debt for 55% of the total amount owed, who have agreed to pay back (say for example) $500 per month for the next 36 months, are noticing that their first 4 months payments totaling $2,000 are being disbursed as follows – $1,750 is going to Your fees and only $250 is actually going to settling the clients debt.

Secondly, this unexpected nationwide probe, just as more and more Debt Settlement Affiliates are sprouting open, it looks like just as many will be shut down. So, be sure you know that the Company you’re sending business to, is first looking out for your customer or someone else will.

Attorney General Andrew Cuomo clearly feels that some debt settlement companies are bastardizing the Industry. Subpoenas were recently issued to American Debt Foundation Inc, American Financial Service, Consumer Debt Solutions, Credit Answers LLC, Debt Remedy Solutions LLC, Debt Settlement America, Debt Settlement USA, Debtmerica Relief, DMB Financial LLC, Freedom Debt Relief, New Era Debt Solutions, New Horizons Debt Relief Inc, Preferred Financial Services Inc, U.S. Financial Management Inc and the Allegro Law Firm.

With the right office training and the right marketing plan, a debt settlement net branch office can close 2 to 3 deals, per agent, per day. Your office training should be ongoing and easy to duplicate. There should always be room for growth and expansion, but the message should be clear and consistent.

Remember; don’t sacrifice client retention for your Office payout, as you’ll find yourself disappointed in the long run.

Compare (below) Your Training, Payout and Overall Relationship with Your Settlement Company.

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