Hello there, it’s me again, The Debt Lady. For those of you who don’t know who I am, here’s some background history. I’ve been dealing with people's finances in one form or another for over 30 years. I’ve watched times change, to the point, where Americans have gotten deeper in debt than ever before. I worked as a bill collector for over 17 years. During that time, I got quite an education about the credit and financial industry. Calling and demanding money can take a toll on you. I realized that what those debtors needed was help and not further harassment. For that reason, I left the industry and found a job at a debt settlement company. I’ve been in this field since 2002 and have been helping consumers in every aspect of their financial lives.
When the mortgage industry crashed a few years ago, many of the mortgage brokers went from their six figure incomes to zero. Since debt settlement was relatively new and unregulated, many of those brokers heard that debt settlement was going to be their next cash cow. So they climbed on board the band wagon of debt settlement company owners. I tried to teach a lot of those people the ethics and value of the debt settlement industry, however, most were looking for a fast buck. The industry was so saturated with mortgage brokers, and other financial people, that it exploded. The problem was, debt settlement isn’t like selling a house where you simply find a buyer, go through escrow and get paid. Debt settlement is a truly complex business that demands fantastic customer service and expertise in the field. Since most of those people didn’t have the experience and were trying to replace their mortgage income, the industry suffered. Early in 2010, the Federal Trade Commission got a lot of complaints from consumers that weren’t serviced correctly. Around the same time, loan modification companies were springing up all over the place promising to “save people’s homes.” The uneducated employees of those start-up companies were promising things that they couldn’t deliver, and the Federal Government stepped in and literally shut most of them down. The large amount of complaints from consumers from both debt settlement and loan modification companies made it essential for them to pass a law forbidding up-front fees and created other rules regulating the industry. Many companies went out of business at that time and the debt settlement industry as we knew it, ceased to exist. There are a few companies still offering debt settlement, but most have moved on, me included.
I believe that debt settlement is extremely beneficial to consumers that have a hard time paying their bills. I also believe that consumers can do it themselves and not have to pay the fees associated with a company to handle it for them. The reason people don’t handle creditors themselves is because they don’t know how, can’t confront them or don’t have the money to pay them. Just like with any subject, if you have some knowledge, understanding and training of how something works, then you can do anything.
If you’re talking to a debt settlement company right now, that says they can settle your debt, and want you to pay upfront fees, then you’ve reached a company that’s breaking the law. They try to get you to pay application fees, legal fees, phone recorder fees or any other fees that they feel they can charge up front, so long as they’re not calling them “negotiation or debt settlement fees.” I’ve seen a company sign someone up for a completely different service and get upfront fees, with the intention of putting them on a debt settlement program six months down the line. It’s illegal, unethical and downright deceiving.
For me, it comes down to a choice. Do I want to continue offering debt settlement to consumers with all the complaints and regulations, or do I want to help consumers do it themselves and teach them how NOT to be effected by bill collectors and their tactics? Well, I choose to help consumers. Most people are experts in their field of choice, like hair dressers or butchers. They were trained, that’s how they make their money, and they’re good at it. However, I haven’t seen people who are education about how to handle credit cards. Nor have I seen where they’ve learned how to budget their normal expenses and balance their check books. This is basic stuff and in most cases is over looked in our education system.
This is why I chose to write it all down, so that you can be as knowledgeable as I am about finances. Believe it or not, it’s something that everybody needs to know. We all need to use money in one form or fashion so that we can exchange that money for something we need. It’s like eating. We all have to eat, so knowing something about food is beneficial to having a body.
I hope you enjoy this guide, and keep in mind that it’s you that can change for the better, you don’t need somebody else to do the job for you, no matter what that job is. The more you know about a subject, the more prepared you’ll be when handling it! It’s pretty simple; read, understand and apply the knowledge.
Since this is a technical manual, there are a lot of words that could confuse you, and you may not understand what you’re reading. Well, don’t worry, because I’ve thought of everything. I’ve included a Glossary of Terms in the back of the book to help you along the way. I’d highly recommend that you read it before you start. If not, then if you come across something you don’t understand, check out the Glossary and clear it up, or go on line and make sure you have a full understanding of what you’re reading, I don’t want you to miss anything.
Remember, this book has all the details on how to negotiate with creditors. I’ve tried to make it light and put personal stories in, but I want you to be aware that it is technical. I don’t want you to get bored or disinterested because the information is more complicated than my other books and articles. Realize that this is the most detailed manual on how to handle collectors that I’ve ever seen. If you want to change your life, then remember this, when you think about putting the book down, I promise you, you wont regret it.
