Counseling your clients for credit card debt settlement
Credit card debt settlement has become very popular with both creditors and debtors in this time of recession
. If you are in the business of counseling for debt settlement, it will be a good idea for you to outsource some of your processes. This will leave you with surplus time and resources to devote to business promotion and marketing. Not only this, but you will also save a substantial amount of money by outsourcing some of your back end processes like customer service, creditor relations and negotiations. In order to look for companies providing back end services to debt settlement companies, you can search on the internet. You will find many companies which specialize in providing client services for the settlement of unsecured debts like credit card loans.
Credit card debt settlement requires proper negotiation with the credit card companies. The companies providing counseling for debt settlement approach the credit card companies and persuade them for a settlement. The credit card companies then assess the actual paying capacity of the debtor and decide upon a settlement amount. This settlement amount can then be paid off as a lump sum or in equated monthly installments. The companies providing creditor relations and negotiation services to your clients are usually very good at negotiating and are able to reduce the credit card debt amount by almost 50% of the original amount payable. They persuade the credit card companies to reduce the interest rate on the negotiated amount payable. They also persuade the creditors to waive off the penalty charges. This entire procedure reduces the burden of credit card debt on the debtors.
In addition to credit card debt settlement, these companies also help debt settlement firms in providing their clients with counseling for debt settlement. They provide basic knowledge about financial planning to the debtors so that they can avoid debt in the future. These back end service providing companies also have an association with a network of legal professionals. These legal professionals provide legal advice regarding taxation, insurance, identity theft etc. to the debtors. They also help the debtor if he or she is sued during the course of the debt settlement program.
Counseling your clients for credit card debt settlement