Debt & Credit

DIY Debt Settlement Myth #5: I’ll Be Protected Against Lawsuits If I Enroll With A Debt Settlement Company

This is the fifth in a series of posts discussing the most common myths about do-it-yourself debt settlement. As consumers shop for a debt relief solution and talk with the sales reps at various debt settlement firms, one of the first questions they will usually ask is, “What about creditor lawsuits? Won’t they just sue me to recover what I owe?” There’s no question that taking the path of...

DIY Debt Settlement Myth #4: Settlement Companies Get Better Deals Because They Have Relationships With Creditors

This is the fourth in a series of posts discussing the most common myths about do-it-yourself debt settlement. The claim that debt settlement companies have relationships with the major creditors is a major part of the sales presentation for traditional settlement programs. I call this the “volume” objection, and of course, it’s total nonsense. The pitch goes something like this: “We are a big company and every day we...

DIY Debt Settlement Myth #3: Only A Skilled Negotiator Can Succeed Against Professional Debt Collectors

This is the third in a series of posts discussing the most common myths about do-it-yourself debt settlement. All too often, I hear consumers say things like, “I’m not a good negotiator,” or “I’m afraid they will bully me.” Since dealing with collection scenarios is new territory for most people, it’s no surprise that people feel this way. This objection is about lack of SELF-CONFIDENCE. People turn to professional...

DIY Debt Settlement Myth #2: I Don’t Have Time to Handle the Project Myself

This is the second in a series of posts discussing the most common myths about do-it-yourself debt settlement. One of the most frequent objections I’ve heard to the idea of handling your own negotiations is that the client is “too busy to handle all the phone calls” involved in obtaining settlements. “I really don’t have time to do this myself,” is a refrain that I’ve heard over and over...

DIY Debt Settlement Myth #1: A Settlement Company Will Get Better Deals Than I Can Myself

This is the first in a series of posts discussing the most common myths about do-it-yourself debt settlement. As you do your research online, you’ll read a lot of pages and articles that are slanted against the do-it-yourself approach and biased in favor of using third-party debt companies. Many articles that have titles pertaining to DIY settlement are really just bait-and-switch marketing for a company program. The article may...

How to Settle Your American Express Credit Card Account

8 Things Debt Collectors Won’t Tell You

by Gerri Detweiler of Credit.com It should come as no surprise that if you’ve fallen behind on your bills, you may be hearing from debt collectors. If they do call, you will almost certainly hear that you need to pay them and that you need to do so immediately. But there are a number of things that they aren’t likely to tell you, and knowing these things can make...

$8.5 Million in Credit Card Debt Settlements by ZipDebt Clients in 2011!

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...

ZipDebt vs. Traditional Debt Settlement – How Do We Stack Up Against the Competition?

In my blog post on “The Future of Debt Settlement,” published a little over a year ago, I assessed the state of the debt settlement industry in the wake of the FTC rule-change that banned the advance-fee model for third-party debt settlement. To summarize, in that earlier post I described the in-progress breakup of the industry into three different groups: (1) companies closing down or suspending all marketing operations,...

Debt Settlement Letters – Myths & Misunderstandings Galore!

In my 14 years as a debt settlement professional, I’ve reviewed thousands upon thousands of debt settlement letters. Last year alone we had about 1,200 of them to review and approve on behalf of our clients. If there is one subject I know well, it’s how to document a settlement! There is nothing especially difficult about it, but I continue to be astonished at the amazing amount of bad...