Starting a Debt Settlement Business can be a Win-Win Clients and Affiliates

Starting a Debt Settlement Business can be a Win-Win Clients and Affiliates

The world of debt is not a fun one to have to deal with. The fact is that a lot of the time most people become stuck in it for years, even decades. This has nothing to do with home loans. This is personal debt such as credit cards, financing through stores, car loans and other revolving debt from lenders. Many people are willing to work hard to get out of the hole but they are faced with a serious problem. Because their debt eats up the majority of their after-tax income, they are faced with the hard reality of digging deeper into the hole as they are trying to get out of it. For example, if a person owes five thousand dollars, one may naively think that's the total amount that needs to be paid off. Assume this person's monthly expenses are about two thousand dollars and that they bring home about the same amount. Theoretically they should not have to borrow anymore more money for their basic living expenses. However, even if they are chipping away at the debt with installments of a hundred dollars a month, that amount is largely offset by compounding interest that continues to accumulate on their total balance. Depending on the interest rates, this person may end up owing even more after a year despite making monthly payments.

For professionals like loan and mortgage brokers, who see lots of clients facing these types of situations every day, becoming a debt settlement affiliate is a great opportunity. Generating a second stream of income through a debt settlement business is a way to simultaneously help people overcome these seemingly insurmountable mountains of debt, while also earning a nice commission. There are several ways that debt settlement can be achieved. In the example above, a debt settlement provider would begin managing the receipt of all collection notices and corresponding with creditors on behalf of the client. The client would then begin making payments into a trust account, which upon reaching a threshold of roughly 50% of the smallest outstanding balance, would then be used to help settle the original debt for a fraction of their original amount.

Additionally, many debt settlement providers are now leveraging the Fair Debt Collection Practices Act to counter overly-aggressive debt collectors who have violated the law. Each violation can result in a fine of up to $1,000, which can then be placed into a trust account on behalf of the client, which is in turn used to help settle outstanding debts. As a debt settlement affiliate, a mortgage broker or insurance broker would simply need to interview a prospective client, see if they are pre-qualified, and then submit an initial application on their behalf to a debt settlement provider. Assuming that some or all of the debt can be settled, the client can move on with their life, and both the debt settlement provider and the debt settlement affiliate earn a commission for their efforts. It's a win-win-win scenario, and it the reason why so many entrepreneurs are looking to start a debt settlement business today.

POST COMMENT

Shopping for Used Vans On-line Will Save Your Business a Bundle Hispanic Small business owner Knows At which Many people Take on Their own Small business Reasons You Can Make Your Life Better With Work At Home Businesses Market "is not short off-season" stocking a large-scale air-conditioning business - Chigo Increase Sales And Customer Satisfaction With A Business Database Cash Cookbook - Review And then Bonus Effective Techniques to Bear in mind Names and Faces of Customers and Business Associates If Nobody Laughs At Your MLM Business Then You Are Doing Something Wrong Why You Should Consider Taking Overnight Cash Advance Loans to Get Through Hard Times Purse party- Relaxable and enjoyable business Cash Loans Over 12 Months - Lessen Your Fiscal Worries Articles Writing And Marketing: Key To Online Business Success Finding Best Business Finance Advice on the Web