Debt Settlement on Today Show

The Today Show recently did an expose on debt settlement companies. While I agree wholeheartedly with their negative opinion on most debt settlement firms, they have failed the test of fair and balanced journalism.
Investigative Today Show reporter, Lisa Myers, spent all of her time uncovering the ugly truth about one company, Credit Solutions. If you remember an earlier post on my blog (https://debtsettlementstory.com/debt-settlement-companies-some-incur-more-debt/), I had also contacted this company.  I was almost desperate enough to fall for their sales pitch. Luckily I didn’t. Here’s a review of their pitch in a nutshell:

  • I was to deposit $2000/month into an escrow account.
  • The first 6 months of these payments into that escrow account would go towards paying the debt settlement company for their services.
  • I would continue to make $2000 payments for approximately 36 months.
  • As settlement offers came in, they would consult me.
  • The banks would be paid from this settlement account.
  • In 36 months, I would be out of debt.

In reality it doesn’t work this way. Most consumers never finish the program. In fact, once the settlement offers come in from the banks, most clients don’t have enough money in their escrow account to pay the offer. Most of their immediate monies have been used to pay the debt settlement company’s fees. Most consumers file bankruptcy.
This is the exact conclusion Lisa Myers came to. However, she fails to see the bigger picture. Not all debt settlement companies have such egregious practices. In fact, there are about half a dozen or so that are true consumer advocates.
She got it right when she said the FTC will soon pass laws banning the upfront fees. Why didn’t she go on to say there are debt settlement companies out there who ALREADY take their fees on the back end?
Unfortunately, Ms. Myers’ article is the typical sensational reporting that we have come to expect. There is nothing positive about her piece. No real help to the desperate consumer. Only doom and gloom.
Had the Today Show really wanted to investigate debt settlement companies and actually disperse useful information to help those in need, she would have mentioned companies like Consumer Recovery Network, Zip Debt, Hoffman Brinker and several others who really make a difference in this sector. Here’s what’s great about these debt settlement companies:

  • No hard sell of their program.
  • You talk to a real debt settlement counselor, not sales person, when you call the company.
  • Performance based commissions that are paid AFTER YOUR CREDITORS GET PAID!!!
  • DIY programs offered for those consumers who are industrious.

In fact, all 3 of the companies I mentioned ENCOURAGE the consumer to do it themselves. They make less money per client with this business model, but they know the success rate is much higher and the benefit to the economy is much greater.
Here is Today’s video.
http://today.msnbc.msn.com/id/26184891/vp/38123545#38123545
Stay afloat. Stay focused. Wealth and freedom are in your future.
Jonathan

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A Debt Settlement Miracle – Part 1

If you are new to the blog, click HERE to start at the beginning of my story.
POST #30?

Mafia spaghetti with seafood and tomato sauce

How do we create an airtight counter offer?  An offer they can’t refuse….not because of the threat of a bloody horse head or anything “silly” like that. More like an offer where the numbers make so much sense that they are realistically un-movable.
Here’s where we stood:

  • Their offer:            $9808

  • My current offer:  $7500

  • My goal:                $8600

After several conversations with my CRN coach, we came up with the silver bullet.
My current offer was $7500. If I deferred March’s car payment of $514, that would bring us to $8014 – payable today.  Then I make an additional payment 30 days from now by deferring my April car payment of $514. Total offer: $8528. I can’t go beyond that amount because:

  • I have already borrowed from EVERYONE I could.

  • I have deferred as many other bills as possible.

  • I can’t defer my mortgage because that would jeopardize the loan mod process.

  • If it weren’t for the loan mod potential, I would just declare bankruptcy and fore-go all of this effort.

NYC - Queens - LIC: 5 Pointz - Roadrunner and ...

There were so many aspects about this offer that made it genius – in fact it was super genius.
I can say this without bragging because I didn’t come up with it –  my CRN coach did. Obviously not her first rodeo. It was exactly this type of creative bargaining that can make or break a deal.
I called Billy in Recovery and made this counter offer. He was impressed by our creativity and resolve, though not AT ALL confident.
He went to the sup and very quickly came back with the same $9808.00 offer from yesterday.
I thanked him for his time and reiterated my intention for doing all of this was 3 fold:

  • To shield my family from anymore hardships.

  • Hold on to my house.

  • Offer a good faith settlement to the bank.

He was again sympathetic.  I asked him to bypass his sup and PLEASE talk to his manager. He agreed.
Two hours later, he called me back to say the manager had denied my offer.
It seemed like I had played my last card. What was left to do?
Then it hit me:

  • Maybe Billy’s compassion for me was a direct result of how I was telling the story.

  • Maybe if I spoke directly with the manager he would “get it” too?

Lucky for me, Billy agreed to make that happen.
Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

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Debt Relief Resources – 10 best sites for information

If you are new to the blog, click HERE to start at the beginning of my story.
POST #22
I have a lot of people ask:

Where can I do my research? What are the best resources?

There are many great resources on the internet. I’d like to think this blog is one of them! 🙂
Out of the hundreds of resources, about 10 of them are really worth your time. Here is my hit list. If you read the info at each of these sites, you will have a great foundation for understanding debt settlement.

Top 10 Debt Settlement Resource Sites

  1. Federal Trade Commission: A wealth of information on what is currently legal, illegal or yet to be determined. If you missed the Senate Committee hearing 2 weeks ago it is worth a viewing.
  2. National Association of Consumer Advocates: Know your rights
  3. Legal Advice Line: Get inexpensive expert legal advice.
  4. National Association of Consumer Bankruptcy Attorneys: Find an attorney in your area that has expertise in bankruptcy and debt settlement.
  5. About.Com:Credit: A collection of forums and blogs covering everything credit related.
  6. Credit Info Center: Great forums, articles and opinions on debt settlement.
  7. Zip Debt:  Charles Phelan is an extraordinary resource on the topic of debt settlement. His DIY program has gotten incredible reviews and results. His blog is indispensable.
  8. Hoffman Brinker: Contains step by step videos explaining the pros and cons of debt settlement.  Easy to understand and a great starting point for your education.
  9. Get Out Of Debt: Steve Rhode’s blog and resource site. Steve is an expert in the credit/debt field. His site is very well trafficked and he has a major presence there. If you post a question, you will get an answer.
  10. Consumer Recovery Network: Saving the best for last. Michael Bovee is the MAN.  He is the consummate expert in this field. Always on the cutting edge of this industry and very generous with his time. ’nuff said!

Happy researching!
Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

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Debt Settlement Companies – The Good Ones

If you are new to the blog, click HERE to start at the beginning of the story.

POST #6
Consumer Recover Network
In this case, the title should be singular. There are other good companies out there, but only a few. For this discussion, I will focus on CRN because they are the one I know.
After weeks of research and hours on the phone, I finally landed at the website of Consumer Recovery Network.  The information made sense so I called them up. Within minutes I was on the phone with Michael Bovee, the man behind CRN.  This wasn’t some salesman trying to enroll another customer. This was a highly informed consumer advocate with real solutions to my problems. We spoke for about an hour and let me tell you 2 extraordinary things that happened:

  1. He listened to me

  2. He made sense.

INCREDIBLE!
In a nutshell, this is why I went with CRN:

  • When I called CRN, I spoke with their president, not some sales guy.

  • He encouraged me to do this myself through their DIY program – the cheaper route!

  • If I had trouble on my own, CRN would step in and negotiate with the bank.

  • If, and only if, CRN did step in and negotiated for me, I would pay them a 15% commission based on the amount they saved me – in other words, they are invested in my results.

  • 100% of my DIY enrollment and membership fees would be applied to their commission  – NO DOUBLE DIPPING

  • I pay their commission fee AFTER I pay the bank.

  • Every logical misgiving about the other debt settlement companies was addressed in my conversation with Michael.

  • And finally – it felt right.

Remember when I said that something felt wrong when I spoke with the other companies? Well nothing felt wrong when I spoke to Michael. In my mind, he was “the guy”. With CRN, I knew things would turn around for me.
AND THEY DID!!!
By now, you are probably wondering if I work for CRN.
No and yes.
I am not an employee of CRN.  However, if you end up hiring CRN as a result of reading this blog, they will give me an affiliate commission of 15% of the initial membership fee.
But let’s do some math, shall we?
According to Michael, the average DIY client has an initial membership fee of $795. Based on that figure, I would make $120 referring someone through their affiliate program. (15% of $795 is $120) Do I want to make $120? Sure!!  But, let’s be clear, my intent for you to call CRN isn’t to make $120. No one is getting rich (or paying for their kids’ college) by making $120.
My intent is to help you. Or should I say – for you to help yourself!!!!
Please continue to do your research AND make sure that Consumer Recovery Network is part of it. They changed my life. They can probably change yours.
Stay tuned, stay afloat. WEALTH AND FREEDOM ARE IN YOUR FUTURE!
Jonathan Grossman

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