How to Start a Debt Elimination Company
Debt elimination companies are businesses that help consumers cut their debt. If you have a background in consumer finance and have the desire to help others out of sticky financial conditions, then you are a good candidate to start your own debt elimination company.
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Instructions
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Getting Started
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1
Hire a team of credit counselors. You should hire people with a background in consumer credit as well as a degree in a business-related major, such as business administration. As far as staffing, you can open with as few as three full-time employees: a secretary and two credit counselors.
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2
Purchase software programs in order to make debt elimination recommendations. Your software program should have the ability to provide credit reports as well as potential payment plan options for your client. Prime Debt Soft manufactures debt management software program for professional use.
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3
Set up procedures for your debt elimination company. Train your counselors to record each client's expenses, income and total debt amount. They will use these figures to determine an appropriate payment plan in order to get rid of the debt while still keeping up with other expenses. Set your new business apart by doing some of the legwork yourself that other companies expect clients to do. This includes researching interest rates, making arrangements with clients' credit card companies to freeze accounts and allow clients to pay you directly one monthly fee that you distribute to their debtors.
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4
Determine the charges for your debt elimination services. As a startup, you might want to offer a free first-time consultation. You can make your money by charging a set fee that will be paid along with the customers' monthly payments that you will make to their creditors. Research credit counseling companies as well to get an idea about competitive price ranges.
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Advertise your debt elimination company. You can join the National Foundation for Credit Counseling in order to access marketing research materials as well as get your company listed in the group's database. They also offer training courses in order to enroll members of your staff.
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Tips & Warnings
You are not required to have a license in order to start a debt elimination company.
