If you didn’t read part one go here first

As I previously stated; on the surface debt consolidation is an ok concept. But as also I pointed out, your net savings is minimal and the destruction of your credit score makes debt settlement a very bad choice for anybody.

If the savings were significant and the damage to your credit score was at least minimized, then you have yourself a solution worth considering. Easier said then done right, or is it?

Lower Fees:
The first thing I would do is make the savings to my clients significant. The solution to this is straight forward - Lower my fees.

From a marketing point of view, it would be a sound move to lower costs. Provide an honest service and I am sure the volume would more then make up for the discount.

Credit Repair First:
My second course of action would be to partner up with a good - honest credit repair company (like yours truly). Their function would be two fold. First, I would have them go pick the creditors apart. I’m sure half the debts would be eliminated right off the bat.

Now the client is consolidating only half the debt. This will again lower the consolidation fees, lower the amount client would have to save, and it will lower the number of creditors that will be reporting late.

Settle whatever’s remaining and send in the credit repair team one last time to see if they couldn’t clean up the remaining mess.

Why stop there?
If you’re a client of My Credit Group you know we constantly coming up with new ways to benefit our clients. Since we know the client has to put money away for a year, I’d be making friends with some local bankers.

Why not put that savings to work and put it in a 1 year CD or some other high interest bearing vehicles? You just added another benefit for your clients and it never hurts to have new friends at banks.

I might educate them on the finer points of credit usage like - oh I don’t know. Maybe using a rewards card for all my purchases so I would get kicked back another few hundred at the end of the year by my credit card company.

The ideas just keep coming but unfortunately, old habits die hard and greed controls a lot of people. This industry is about ethics. Right now the industry is filled with scum and greed.  As the wrinkles are ironed out, consumers are educated and the FTC cracks down, it will work its way out, it always does.

If you want to stay in business you better figure out which side of the fence you’re on, or you won’t be around long. Will debt settlement companies take my advice? We’ll see, greed is a powerful emotion but I know few of them know I’m right.

If they don’t take my advice, they shouldn’t be surprised if they see us toying with the idea ourselves.

Related Articles:

• If were a Debt Settlement Company Part 1