While the number of Americans newly interested about settlement negotiation and other credit card debt programs persistently swells along with the looming unsecured debt toll shared by most all of our men and women, the average consumer remains alarmingly unaware about virtually any accurate detail regarding the credit card debt negotiation procedures. Sure, folks have heard bits and pieces about debt settlement negotiation around the water cooler or over a family dinner or by turning on the very end of a television news program, but most of the debtors who take advantage of a cost free introductory session with a settlement counselor know nothing more about the approach beyond its comparative novelty among credit card debt programs, the incredible triumphs over the looming creditors, and its distinction as wholly separate from the ever more fiercely avoided Chapter 7 bankruptcy alternative.
Leaving aside the mortgage equity loan industry – which has sharply pulled away from consolidation loans and, now more than ever, restricts most financing opportunities to home owners with a low debt to income ratio and credit bureau scores above seven hundred – debt management firms aren’t particularly famed for their bristling standards of eligibility when it comes to defining their client base. The credit card debt programs to have reached the greatest heights of notoriety over the post bankruptcy era of the 00s were almost certainly Credit Card Counseling companies, and they seemed to be known less for their services than for their nonstop marketing that targeted a less than aspirational segment of the United States. Settlement negotiation, in direct contrast, requires a specific sort of individual or couple for these businesses’ thriving new vision of debt relief to be effective.
In a way, the settlement brand of credit card debt programs splits the difference between what current public perception might view the “ideal” clients of, respectively, mortgage lenders and Consumer Credit Counseling agencies. That’s exaggerating things more than a little bit. It’s not quite so hard to qualify for an equity loan as we might think (or even wish) and Consumer Credit Counseling firms bring in their share of graduate school professionals who don’t need instruction designing a structured compensation approach or effective home budget but who do respond to the counselors’ encouragement and credit their positive attitude with coaching them away from self destructive shopping jags. Different debt relief programs fulfill the needs of different debtors, after all
The CCC credit card debt programs’ low costs and uncomplicated tutoring seminars illustrating simplified household finance truisms may generally attract borrowers unworried about further abusing credit scores nearing below four hundred. Also, many of their consumers aren’t exactly quaking over the threat of legal actions set in motion by the banks as garnishment or forfeiture would not be effective against the unemployed and cash poor. The most desirable candidates for negotiated settlements, however, must not demonstrate too excellent a gross yearly salary or the negotiators won’t even agree to a consultation in the first place.
Obviously, if you were making that kind of money, the lender reps would ask why you could not simply pay off the balances as they stand. On the other hand, if you were genuinely unemployed or only working part time with barely enough earnings to afford the necessities for your family, the people running the credit card debt programs might question if any sort of settlement would be worth pursuing since there would seem to be no additional funds available for repayment. It’s a tricky compromise they ask for, but the rewards for qualifying could be immense.