In 2011, clients of my ZipDebt program reported settlements totaling more than $8.5 million of debt, primarily credit card debt balances. Here are the actual statistics:
ZipDebt Settlement Results for 2011
Number of settlements reported __568
Debt balances settled __$8,557,873
Amount paid for settlements __$2,752,917
Client savings __$5,804,956
Average account balance __$15,067
Average settlement result __32.2% (balance at time of settlement)
To put these figures in perspective, first you have to remember that ZipDebt is a “boutique” rather than a large firm. During 2011, with just one other person helping me with coaching, our clients saved nearly $6 million off their balances. Every single one of these settlements was SELF-NEGOTIATED. So much for the oft-repeated claim (by debt settlement sales reps) that consumers can’t negotiate their own settlements!
Here are some important additional data points:
- Out of the 568 reported settlements for 2011, 445 of them were negotiated BEFORE CHARGE-OFF.
- Two out of three settlements were negotiated directly with the ORIGINAL CREDITOR, without the involvement of any external collection agency or law firm.
- Debt purchasers were involved in only 12 of the 568 settlements, or roughly 2% of the total. (Contrary to popular misconception, it’s not always easy to settle with purchasers, and this end of the industry is where many lawsuits take place.)
- Clients reported a total of 11 creditor lawsuits. This translates to a risk factor of 1.9% per account.
Let’s put it all together. What does the above data tell us?
- ZipDebt clients work quickly, settling about four out of five accounts before the charge-off deadline, and nearly all accounts within a 12-month timeframe.
- ZipDebt clients negotiate most of their settlements (66%) with the original creditor, meaning fewer situations where it was necessary to negotiate with a collection agency or law firm.
- The average settlement result of 32.2% blows the doors off the results published by ANY traditional debt settlement firm (assuming that you can FIND any published results!).
- The legal risk for a properly coached DIY debt settlement client is FAR BELOW that of clients enrolled in traditional 36-month debt settlement programs.
- All of the above was accomplished with a fee structure that represents a small fraction of what most companies charge.
Do you want to settle your debts quickly, pay less money out of pocket, eliminate steep “negotiation fees,” and reduce your legal risk to the maximum extent possible? If yes, then don’t hire a third-party debt settlement company! Get the education, training, and coaching support that you need to be successful at this process on your own.
If you think debt settlement might be right for your situation but would like more information after reading our free materials, please feel free to request a 20-minute phone consultation.