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5 Things Debt Settlement Companies Won't Tell You: Get the Facts on Negotiation! - YouTube
Channel: Michael Bovee
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hi there I'm Michael Bovee with consumer
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recovery Network comm and I want to
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continue on with our debt settlement
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video series and talk today about some
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things that you probably will never hear
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from a debt settlement company consumer
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recovery network is involved in the debt
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settlement industry we're an educational
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service provider and we also provide
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professional negotiation services but we
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do it differently always have and so
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because of that I'm free to talk about
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some of the things in my industry fails
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at one of those is giving you enough
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information to decide whether
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settlements right or wrong for you the
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reason for that is mainly profit it's
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mainly because if you don't engage with
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their services they're not getting paid
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so there's an easier softer less
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informative approach that's taken to
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sell people on the idea that that
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settlements a good idea for them to
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avoid bankruptcy so in this video I want
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to talk about five things that you will
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not typically hear a debt settlement
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company say let's start with number one
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some of your creditors refuse to work
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with my company the fact is some
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creditors won't deal directly with a
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debt settlement firm what happens when
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creditors do this is you're required to
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let accounts go more delinquent than
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might have been necessary so when a
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settlement company is not telling you
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that some creditors are not going to
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work with them they actually can be
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impeding your ability to succeed or save
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the most with settlement or settle
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earlier so that there's less of an
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impact to your credit report so it's a
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key thing to not share that information
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with you let's move on to number two a
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debt settlement company will probably
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not tell you that they have to wait for
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some accounts to charge off before
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trying to settle even though that could
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cost you more what do I mean by that
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well if a debt settlement company tells
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you that they're going to have to wait
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longer than may have been necessary to
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settle an account what they're not
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telling you is that because of number
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one where some creditors are not going
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to work with them it forces them to have
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to deal with a debt collector debt
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settlement is a very pretty
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double process it's why my company
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exists it's why the entire industry
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exists and by predictable when it comes
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to number two your creditors charge off
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debt they have to it's actually part of
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an accounting principle that they have
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to abide by when they do that they do
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one of three things they send it out to
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a debt collector just regular old debt
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collection agency that gets paid when
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they're able to get you to pay them or
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they'll sell that debt to a debt buyer
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and investor somebody who's risking
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their money thinking they're going to
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get more back when they collect for you
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or they're going to send it to an
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attorney and that attorney is going to
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collect part of that collection might
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even involve suing you to get you to pay
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when a debt settlement company fails to
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tell you that some of their creditors
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your creditors are not going to work
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with them and they now have to wait for
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a debt collector to get the account
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before they can actually settle it for
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you they may be costing you 10 15
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percent more even higher in the
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settlement arrangement so it cost you
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money for example one of the major
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national credit card issuers currently
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working with some of the members that we
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train and educate on how to settle their
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own debt are seeing 25 and 30 cent on
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the dollar settlements those same
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accounts once placed with a debt
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collection agency or sold off to a debt
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buyer or placed with an attorney get
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settled by a lot of people and companies
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in my industry at 45 percent 50 percent
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Wow I mean this could actually mean
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double the amount of money that you
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could have settled the debt for let's
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move on to number 3 you can settle debts
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on your own and sometimes get a better
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deal than we can well I just talked
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about that as part of number 2 but I
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want to hit this a little bit harder so
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that you actually grasp what I'm saying
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when you work directly with your
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creditors and they're not working with
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another company or maybe they'll even
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work with a debt settlement company
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oftentimes my industry gets pigeon-holed
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why because of the way most of my
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industry operates you pay money into a
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special purpose account an escrow fund
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every month and you let that money
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accumulate over seven months and over
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seven months you've got enough money now
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to go settle with that however if you
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and
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age with your creditor before they
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charge off the account then you're able
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to settle at that lower savings often
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that it isn't available to debt
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settlement companies until gets out to
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collection land and you can get terms so
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where you're saving up for seven months
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for the settlement company to settle it
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in full you might be able to settle
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direct with one of your banks and get 90
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day terms so you've got a $10,000
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account let's say you settle it for
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three thousand and they only need a
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thousand in the first month a thousand
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in the second month and a thousand in
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the third month so you were able to
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budget and save and settle that debt
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save seven thousand dollars and spend
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ninety days doing it whereas hiring the
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debt settlement company you might have
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missed that opportunity let's move on to
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number four if we weren't charging you
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such high fees you could actually be out
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of debt faster well that's pretty
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self-explanatory because if somebody's
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fees are high it prevents you from
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settling the second debt the third debt
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the fourth debt because most of the time
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debt settlement works like this you save
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up money as soon as you have enough to
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settle one account you sell it the
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company grabs their feet you save up
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money again start over another six seven
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months adding money to an account every
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month and as soon as there's enough to
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settle a debt company settles the debt
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and collects their fees those fees
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actually prolong how long it takes you
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to finish settlement so you're not going
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to hear them talk about that you're not
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gonna hear them talk about how you can
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do this on your own you're not going to
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hear them talk about how some creditors
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are not even going to work with them
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forcing accounts out to third parties
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that settle for higher rates all because
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of fees and it's the biggest bone that I
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have to pick with my industry since we
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created consumer recovery Network back
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in 2004 our fees have been 15% of
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savings charged after the fact when we
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do the settlements most of the
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settlements get done by our members
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themselves therefore there is no 15% of
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savers but my industry thrives on that
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fee structure they're not telling you
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that this can happen so much more faster
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because they're gonna sign up with them
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they're not going to be able to stay in
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business so fees matter just because
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CRN's fees are the lowest in the
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industry historically doesn't mean that
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there aren't good companies out there
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doing similar things
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there are a couple unfortunately most
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companies charge either about 18 to 25
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percent of your enrolled debt so if you
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have $50,000 worth of debt their fees 20
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percent of that okay I paid overtime
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obviously that affects your ability to
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finish settlement or succeed with some
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or they charge a percentage savings like
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CRN does only those fees are 30 to 40
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and sometimes even 50% of savings
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believe me fees matter in debt
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settlement let's move on to number five
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you're a good fit for our program but
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bankruptcy may still be a better and
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less expensive option so go ahead and
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speak with an attorney before committing
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to enrolling in our debt settlement
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program well that's pretty
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self-explanatory as well you're a
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captive lead that's what the industry
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refers to you as when you're on the
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phone with a debt settlement salesperson
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so the last thing they want to do is
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recommend you connect with anybody else
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let alone an attorney where you might
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learn that bankruptcy is probably an
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option too because anybody that's
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looking at debt settlement is looking at
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it as an alternative to bankruptcy and I
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get it bankruptcy you want to avoid it
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it's understandable but it might be the
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right thing to do so hearing from
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somebody that you should go and talk
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with somebody else about your situation
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and there might be a better answer
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that's consistent with you getting out
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of debt for the least amount of cost in
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the quickest way and consistent with
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your goals for yourself Fresh Start
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example through Chapter seven bankruptcy
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you're very rarely going to hear that
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you need to research all your options
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and you're hearing that from me
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and I'm a debt settlement guy so if
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you're in a put place where you can no
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longer afford your monthly bills it's a
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process of elimination and it involves
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checking out three intervention options
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once credit counseling - debt settlement
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and you should always talk with a
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bankruptcy attorney and find out what
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your qualifications are for chapter 7
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and way those three things and then make
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a decision talk with reputable companies
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that have built a rapport that you trust
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that are going to share the details
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beyond these five things but these five
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things are very important for you to
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consider that's why I'm talking about
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them today
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and our five things that you won't hear
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from a debt settlement company video you
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can learn more about that settlement on
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the consumer recovery Network comm
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website Michael Bovee signing off for
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now
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