Debt consalidation comments.

[jasdavis09]

I have ben thinking about selling debit consalidation on the side as a way to supplement my income. Does anyone here have a opinion on debit consalidation? Does it work? Is there risk for people?

[srblanco7]

Did you mean "debt consolidation"? I googled the term "debt consolidation" and it returned 37 million matches. What are you proposing to "sell" that's different than the others? Also, I generally think it's a scam.

[jasdavis09]

Yes that is what I ment. I am sure it is all the same. I have ben hearing a lot about it on the radio there are companys starting up all over the place. I have limited information on it as of now. Thats why I was asking about it.

[srblanco7]

This article gives some good background on the industry and some do's and don'ts from a consumer perspective.

The consumers' guide to credit counseling - MSN Money

[GREENBACK]

I think these companies don't do much that an individual can't do on their own. For many that have never had to overcome debt these companies make themselves sound indespensible but they really just charge a fee for things you can learn here or by a trip to the library.

With that said, your question about doing this as a side job may be worth looking into. Some people go to tax preparers when they could do it on their own and some go to debt consolidators so apparently the buisness is out there

[jasdavis09]

Thank you green back. I like your open mind. My bigest concern is do they really work? I would be selling to people that I know so I want to make sure it is legit.

[kork13]

Thank you green back. I like your open mind. My bigest concern is do they really work? I would be selling to people that I know so I want to make sure it is legit.

The basis of debt consolidation companies is that the consolidation company does one of two things:
a) negotiates more manageable terms with the companies holding the person's debt (balance reduction, term extension, rate reduction, payment reduction, etc.);
~or~
b) straight up BUYING the person's debts from the creditors, thus enabling the consolidator to set new terms for the person to repay the consolidator rather than all of the different creditors.

For these services, the consolidator charges a fee based on some sort of scale/schedule.

Do they work? Yea, they tend to, as long as the company is legitimate (that is, they don't try to siphon off the customer's money or any other type of fraud). For the customer, they tend to not always be worth the fees, because they often could get similar results by talking to their creditors on their own. For the consolidation company, it can be profitable, so long as there is a sufficient customer base and the outfit is operated and managed efficiently and effectively. So long as the company (any company, really) does a good job of performing a desired service, it can be profitable.

[boosami]

If you're looking for an industry to capitalize on people's recession problems, debt consoliation is a good one. So is the pay day loans industry. So is bankrupcy law. They're all shady, if you ask me. If you don't have a moral objection to siphoning money off folks whose lives are already on the rocks, it's a viable money making opportunity.

Is some business offering you work to "sell" for them? Or are you trying to start a company up? Now is not the best time to try to stand up a new business.

[prosper]

I have ben thinking about selling debit consalidation on the side as a way to supplement my income. Does anyone here have a opinion on debit consalidation? Does it work? Is there risk for people?

I think that there will always be a market for this because getting out of debt requires dedication and some type of motivational influence such as the service that you are offering. Its not my cup of tea but some people just need personal guidance because they are unable to do it on their own. The fees for this service does not make mathematical sense but neither does the snowball method. Whatever helps a person get out of debt legally that is best for that particular individual is fine with me.

[wincrasher]

Using a debt consolidation company is an excellent way to destroy your credit very quickly.

Probably quicker than you could do it yourself.

[sakigt]

Thank you green back. I like your open mind. My bigest concern is do they really work? I would be selling to people that I know so I want to make sure it is legit.

Back in the day, I was offered a $5 raise to quit my job and work for one of these companies. I went in for an interview and was offered a position, but I declined.

It depends on the company, of course, however the one that approached me was a scam. Basically you stop making payments to your credit cards and make the payment to the company. The company saves your money and when the time comes they call the credit card company to argue down the debt. Yes, your total debt it reduced but at the expense of your credit....

[jasdavis09]

Back in the day, I was offered a $5 raise to quit my job and work for one of these companies. I went in for an interview and was offered a position, but I declined.

It depends on the company, of course, however the one that approached me was a scam. Basically you stop making payments to your credit cards and make the payment to the company. The company saves your money and when the time comes they call the credit card company to argue down the debt. Yes, your total debt it reduced but at the expense of your credit....

This is the same set up I have ben looking into.

[lebaggblu]

Poor souls

[whiteshadow01]

Yeah that's sad ....