Tweet

An outlook on the future of Debt Consolidation Companies

Guest post by: Bryan Garner

Article Overview: Every program is unique and results will vary depending on your ability to pay and the creditor profiled enrolled.

An outlook on the future of Debt Consolidation Companies

Over the past several years America has experienced one of the greatest recessions in history. The recession has created the need for help with unsecured debts, mortgages, loans, and the need for Debt Consolidation Programs. The supply and demand for these services has increased the amount of start-up debt consolidation companies over the years. This has also caused the need for government regulation on these Debt Consolidation Companies. The FTC amended the Telemarketing Sales Rule in order to ensure consumers are not being dwindled out of their hard earned money. It is now illegal for any Debt Consolidation Company to charge any fee’s until the Debt Consolidation service has been rendered. Meaning you will not owe any fees until the Debt Consolidation Company has saved you money. Which is great for the consumer’s but has presented a challenging task for the Debt Consolidation Companies that are offering the services. Debt Consolidation Companies now have to supply services and soak up the cost of operation for nearly six months before receiving any type of payment. The regulation on these Debt Consolidation Companies took effect in October of 2010.

During the past six months we have seen several Debt Consolidation Companies try to circumvent the new FTC rule by attempting to find loop holes in the rule with attorney based models or restructuring as a Non-Profit Company in order to collect fees upfront. Several Debt Consolidation Companies have had to close down due to their inability to adjust to the advance fee ban. In the end we all will have to adjust to the new regulations just like the banking and health care industry has had to make adjustments. It has been proven over time with the rise and fall of entire industries that you either change or comply with the times and government regulations or get left behind. Within the next few years there will only be a small amount of Debt Consolidation Companies left to provide such a needed service to the American public. When looking for a Debt Consolidation Company to help you manage your finances make sure to do your research as to how long the Debt Consolidation Company has been in business, what accreditations they have, and their Dunn & Bradstreet reliability report.

A Debt Consolidation Program is an agreement between a debtor and a creditor to fully satisfy a debt for a reduced payoff amount. It involves a team of professionals who negotiate a lump sum payoff amount with your creditors to be paid out over the next 6 to 36 months. The client achieves this with a lowered monthly payment. It is not a consolidation loan or credit counseling service. A Debt Consolidation Program will reduce your current outstanding total balances by 20-80% depending on the status of your accounts and your ability to prove your financial hardship.

These programs ARE NOT designed for consumers who CAN make on time monthly payments and are simply mad or upset with creditors for raising interest rates, minimum payments or both.

Related Articles
  How Does Debt Consolidation Affect Credit?
  Consolidation Debt Management Money
  Debt Consolidation and Refinancing – Is it Right for You?
  How Will Debt Settlement Affect my Credit
  Debt Consolidation A Top Rated Home Based Business
  How to Start a Debt Consolidation business
  Three Pros of Debt Consolidation
  Alternative Student Loans
  How to Make Money through Business Debt Consolidation
  Will New Laws Make Debt Management a Safer Option for Consumers in Debt?
  Credit Alliance Group Helps with Personal Credit Card Debt
  Beware of Charged off Debts!
  Find Online Help For Consolidated Student Loans
  4 Tips to manage your business debt in a better way
  10 Ways to Get Out of Debt!
  How Your Crappy Bad Credit Home Loan is Fixable
  Reduce Your Debts
  Debt Management Help
  Consolidate Student Loans
  FDCPA Laws

Article Tags: Consolidation, Credit Alliance Group, Debt, Debt Consolidation, Debt Consolidation Companies, Debt Consolidation Programs
Referred by: http://www.creditalliancegroup.net



Related Forum Posts
Outlook Backups - Well, my business partner discovered last week how important it is to get a GOOD backup for outlook. unfortunatley we've also discovered that the way he did back his info up wasn't sufficient.. too little too late mind you. Just curious to what you all do? Are you all even using outlook? I have outlook 2007 and while I couldn't live without it, I hate it. It's clunky, it doesn't always work right and I wish there was a better solution for me. How are you all accessing your mail? Do you do regular back ups?
Profiling Famous Women Entrepreneurs - Great suggestion Leanne! The PROFIT Companies are always great sources!
Re: Wake up every morning with the thought that something wonder - Everyday should be seen as the best day to expect the best of things. We should rejoice and be glad for seen the new day and look forward to something good. No one has ever enter into the future, today is the future we a looking for. Whatever we do and expect that day will determine the future we are looking towards
Re: For Gmail users... - I use gmail for just about everything, even for my online site and work email i have it all forwarded to my gmail. I find it much easier to keep track of all my contacts and keep everything in order. Never used outlook though so i dont know which is better.
Why a project fails? - The top 10 factors that have driven failed projects are: 1. Project sponsors are often not committed to the objective. They have a lack of understanding of the project and are not actively involved in the project strategy and direction. 2. Some projects do not meet the strategic vision of the company. If business needs are not clearly defined, it will result in a project that does not add value to the bottom line or enhance business processes. 3. Projects are started for the wrong reasons. Some are initiated purely to implement new technology without regard for whether the technology is supportive of the business needs. The converse of this is a project that does not support existing technology, resulting in major scope creep and resultant expenditure. 4. Staffing is a reason for failure, eg not enough dedicated staff (project managers and project team members) allocated to projects. Project team members lack experience and do not have the required qualifications. Line-staff believe that they will be able to manage projects but are only 40% available to do so. Focus in this regard is not on the delivery of the project, but on the comfort zone of the project manager and his own time management. 5. Incomplete project scope. No clear definition of the project's benefits and the deliverables that will produce them. 6. A project plan that is non-existent, out of date, incomplete or poorly constructed and just not enough time and effort spent on project planning. 7. Project value management is not put into practice to evaluate baseline cost agreed during baseline transfer against actual costs spent at any given time. Project costs and financial do not form an integral part the project during execution. 8. Insufficient funding, and incorrect budgeting is still a major reason for projects not delivering their goals and objectives within the quality framework that was required, because projects always need to deliver yesterday within X budget. 9. No formal project management methodologies and best practices aligned to the company's specific needs are used to assist project performance. Companies do not want to invest in best of breed methodologies that will benefit the bottom line over a period, with projects delivered within budget. Companies do not recognise the value of using a methodology to support and enable them to record their own best practice project results for future reference, and to build a knowledge base within the company. 10. Not all project are going through a formal signed off process using a proper post mortem process to determine lessons learned and to build their own reference model for future use. A certificate signed off between sponsors and other third-parties will demonstrate project success but even that is quite seldom.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How To Become A Member of the Paparazzi

Setting Goals for your Home Based Business

Are You Fulfilled

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.