Hi there. I am Michael Bovee
with ConsumerRecoveryNetwork.com and I want to continue on with our debt settlement video
series and talk today about some things that you probably will never hear
from a debt settlement company. Consumer Recovery Network is involved in
the debt settlement industry where an educational service provider and we
also provide the professional negotiations services, but we do it differently, we
always have and so because of that I am free to talk about some of the things
at my industry fails at. One of those is giving you enough information
to decide whether settlement is right or wrong for you.
The reason for that is mainly profit. It is mainly because if you don’t engage
with their services they are not getting paid so there is an easier softer
less informative approach that is taking to sell people on the idea that selling is
a good idea for them to avoid bankruptcy. So in this video I want to talk about
five things that you will not that we hear at that settlement company say.
Let’s start with number one. “Some of your creditors refuse
to work with my company.” The fact is some creditors won’t deal
directly with a debt settlement firm. What happens when creditors do this is you
are required to let accounts go more delinquent than might have been necessary. So when there is something the company is
not telling you that some creditors are not going to work with them, they actually
can be impeding your ability to succeed or save the most with settlement or settle
earlier so that there is less of an impact to your credit report.
So I it is a key thing to not share that information with you.
Let’s move on to number two. “The debts of the company will probably
not tell you that they have to wait for some accounts to charge off before trying
to settle even though that could cost you more.” What do I mean by that? Well, if a debt settle in a company tells
you that they are going to have to wait longer than may have been necessary to settle
an account, what they are not telling you is that because of number one where
some creditors are not going to work with them. It forces them to have to deal
with the debt collector. Debt settlement is a very predictable process. It is why my company exist that is why the
entire industry exists and by predictable when it comes to number two your
creditors charge off debts. They have to it is actually part of the
counting principle that they have to abide by. When they do that they do one or three things. They send it out to a debt collector just a
regular old debt collection agency that gets paid when they are able to get you to pay
them or they will sell that debt to a debt buyer, an investor, somebody who is risking
their money thinking that they are going to get more back when they collect
from you, or they are going to send it to an attorney and that attorney is gong to collect
part of that collection might even involve suing you to get you to pay. When a debt settlement company fails to
tell you that some of their creditors your creditors are not going to work with them
and they don’t have to wait for a debt collector to get the account before they
can actually settle it for you. They maybe costing you 10, 15% more even
higher and the settlement arrangement, so it will cost you money.
For example, one of the major national credit card issuers currently working with
some of the members that we train and educate on how to settle their own debt
are seen 25 and 30 cent on a dollar settlements. Those same accounts once placed with a
debt collection agency or sold off to a debt buyer or placed with an attorney
gets settled by a lot of people in the companies in my industry at 45%, 50%, wow
I mean this could actually mean double the amount of money that you could
haves settled the debt for. Let’s move on to number three. “You can settle debts on your own
and, sometimes, get a better than we can.” Well I just talked about that as part of
number two but I want to hit just a little bit harder so that you actually
grasp what I am saying. When you worked directly with your creditors
and they are not working with another company or maybe they will even
work with a debt settlement company. Oftentimes, my industry gets pigeon hold,
why, because the way most of my industry operates. You pay money into a special purpose account
an Escrow fund every month and you will let that money accumulate over 7 months
and in over 7 months you got enough money now to go settle a debt.
However, if you engage with your creditor before they charge off the account then
you are able to settle at that lower savings often that is available to
get settlement companies until it gets out to collection land and you can get terms so
where your saving up for 7 months for the settlement company that settle it in full
you might be able to settle direct with one of your banks and get 90 day terms. So you got $10,000 account let’s say
you settle it for 3,000 and they only need a thousand in the first month, a thousand in
the second month and a thousand in a third month. So you are able to budget and save and
settle that debt and save $7,000 and spend 90 days doing it. Whereas hiring a debt settlement company
you might have missed that opportunity. Let’s move on to number four. “If we weren’t charging you much such
high fees, you could actually be out of debt faster.” Well that is pretty self explanatory
because if so many fees are high it prevents you from settling the second
debt, the third debt, the fourth debt because most of the time debt
settlement works like this. You save up money. As soon as you have enough to settle
one account you settle it. The company grabs their fees. You save up money again.
Start over another 6 or 7 months adding money to an account every month and as soon
as there is enough settlement debt companies settles for that
and collects their fees. Those fees actually prolong how long it
takes you to finish them so you are not going to hear them talk about that.
You are not going to hear them talk about how you can do this on your own.
You are not going to hear them talk about some creditors are not even going to work
with them forcing accounts out to a third party to settle for higher rates all because
of fees and it is the biggest bone that I have to pick with my industry since
we create a Consumer Recovery Network back in 2004 our fee has been 15% of savings
charged after the fact when we do the settlements. Most of the settlements get done by our
members themselves therefore there is no 15% of savings. But my industry thrives on that fee structure,
they are not telling you that this can happen so much more faster because
and I guess sign up with them. They are not going to be able to
stay in business so fees matter. Just because CRN’s fees are the lowest in
the industry historically it doesn’t mean that there aren’t good companies
out there doing similar things. There are a couple, unfortunately
most companies charge either about 18 to 25% of your enrolled debt so if you have $50,000
worth of debt their fees 20% of that. I paid over time. Obviously that affects your ability to
finish them or succeed with them. Or they charge a percent of savings like
CRN does only those fees are 30 to 40 and sometimes even 50% of savings. Believe me fees matter in debt settlement. Let’s move on to number five. “You are a good fit for our program,
but bankruptcy may still be a better and less expensive option so go ahead and speak
with an attorney before committing to enrolling in our debt settlement program.”
Well, that is pretty self explanatory as well. You’re a captive lead that is what
the industry refers to you as when you are on the phone with a debt settlement sales person.
So the last thing they want to do is recommend you connect with anybody else
let alone an attorney where you might learn that bankruptcy is probably an option
too because anybody that is looking at that settlement is looking at it as
an alternative to bankruptcy and I get it bankruptcy want to avoid it. It is understandable, but might
be the right thing to do. So hearing from somebody that you should
go and talk with somebody else about your situation and there might be a better answer
that is consistent with you getting that debt for the least amount of cost and
the quickest way and consistent with your goals for yourself, fresh start example
through chapter 7 bankruptcy, you are very rarely going to hear that. You need to research all your options and
you are hearing that from me and I am a debt settlement guy. So if you are ready to place where you can
no longer afford your monthly bills it is a process of elimination and it
involves checking up 3 intervention options. One is credit counseling; two, debt
settlement and you should always talk with the bankruptcy attorney and find
out what your qualifications are for Chapter 7 and weigh those three things
and then make a decision. Talk wit reputable companies that have built
a rapport, that you trust, that are going share the details beyond these
five things, but these five things are very important for you consider and that is why
I am talking about today in our 5 things that you won’t hear from a debt
settlement company video. You could learn more about debt settlement
on the consumerrecoverynetwork.com website Michael Bovee signing off for now.