Economic Downturn Drives Growth in Debt Resolution

This historic economic crisis is fueling growth among debt resolution firms as more troubled consumers burdened by unsecured debt seek help in reaching repayment agreements with creditors.

Consumers failing to qualify for the type of creditor concessions provided by routine credit counseling often contact debt resolution companies and law firms, which negotiate with creditors to reduce debt by cutting interest rates and fees and by reducing part of the principal owed. The consumer agrees to repay all or part of the original debt in a lump sum or through a series of payments to the debt resolution company, which retains a portion for its fee.

Debt resolution fees can range from hundreds to thousands of dollars, depending on the debt, say industry observers.

Credit Card issuers are becoming more open to resolving debts through debt resolution firms, as they try to reduce their ratio of charged off loans.

JPMorgan Chase & Co. confirms that when it is directed to do so by its customers, it will enter into negotiations with debt companies.

Credit card issuers growing willingness to agree to feasible "terms set by consumer," which enable borrowers to make monthly payments to the creditor through the debt resolution firm. This differs from the more traditional arrangement of repaying the renegotiated debt in a lump sum.

Almost all credit card debt resolution plans are now handled through installment payments.

Although certain unscrupulous debt firms tarnished the industry's image by charging excessive fees and sometimes failing to deliver services, bringing negative light to the industry.

Self Logix has been actively working to rebuild consumer trust. Self Enrollment Debt System (SEDS) has revolutionized the debt industry by bringing transparency and legitimacy to the industry.

SEDS allows debt burden consumers to choose on there own feasible repayment terms.

Your company is contacted by a prospect, you direct them to your SEDS (Self Enrolment Debt System) SEDS will show them why they should enroll in the debt program you offer, using educational custom video tutorials. We have found that a sales rep loose deal when it comes to explaining what debt solutions are, and during the “consultation” the prospect doesn’t quite understand the situation there in terms of if they continue there current path. SEDS clearly displays using bars to compare all there options and clearly displays how much each individual potential prospect is saving by enrolling in your solution making it a guaranteed close.

Self Enrollment Debt System is based upon your configuration, your new system calculates your fee’s, your average negotiated amounts you’d like to use,   automatically displays your proposal, ensures that consumer’s needs and your product are in alignment, and creates your agreement. SEDS holds every prospect’s hand leads them through an educational custom video tutorial while they slowly give you information to automatically present them with an accurate agreement within 10 minutes without a Debt agent on the phone. What does that mean? Your sales agent’s jobs now are to call get the prospect confirm the numbers are correct and to execute there agreement and get it back to you.

Self Enrollment Debt System quickly converts your Sales Leads (prospects) to clients enrolled with a contract in hand.

You agreements are created on PDF and quickly and presented to your Prospect within seconds ready for e signature. This integrated feature speeds up the consultation process and will boost your close ratio. Your company will close more business and increase profits.