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HOW TO START YOUR OWN CREDIT AND DEBT COUNSELING SERVICE
Here's a business idea that meets all the aspirations of the
American Dream.
You can start small with little or no investment, develop it
in your spare time, and parlay it into a $100,000 a year income -
all within the next twelve months or so.
Really, all it takes to move on this one is an empathy for
people, a basic understanding of money management, about 500
business cards, some smart advertising, and you're in business.
Your greatest expense or investment, of course, will be for
advertising.
The first, and most important thing to learn is the "thought
processes" in the minds of the people or firms that lend money.
No one lends money with the thoughts of foreclosing on the loan
and taking away a borrower's collateral. Whenever the lender is
forced into such a situation, everybody loses. The borrower loses
his possessions, and the lender ends up with about one tenth of
the money he originally loaned out.
Therefore, the lending institution will generally do
everything possible to work with the borrower as long as he
continues to show good faith in attempting to repay the full
amount of the loan. The most important thing a borrower should
do, once he finds himself in a financial bind, is get in touch
with his creditors and apprise them of his situation. Usually,
the lender will set up a meeting for an open discussion between
himself and the borrower, in order to adjust or work out a more
convenient repayment schedule.
Most people who borrow money are having money management
problems to begin with, and are actually terrified to death at the
thought of people from the loan company calling them. Although
they generally won't admit it, most are aware that they are having
problems managing their money. They are embarrassed about it, and
instead of openly seeking help, they attempt to cover up the
problem, and then hide from or avoid the very people who want to
help them.
Over the past three years, personal and small business
bankruptcies have been soaring to record levels. At the bottom
line, very few people want to file bankruptcy against their
creditors, because regardless how easy it is, the thought of
having "gone bankrupt," still leaves a stigma.
And this is where you step in with your Professional Credit
and Debt Counseling Service. You should never have any trouble
finding clients.
Remember, step one is always to notify the client's creditors.
This is the first instruction (or job) that you give to the client
after you've heard his story. The borrower should be the one to
notify the creditors, and ideally, he should call each on the
phone, set up a meeting and then discuss with the lender his
current financial situation as well as his plans to rectify the
problems, and resume payments. The plan he'll discuss with the
lender will be the plan you assist him in setting up.
If the borrower is in over his head and with no other
alternative, you should immediately advise him to file for relief
under "The Wage Earner's Plan," as explained in Chapter 13 of the
Federal Bankruptcy Act. In essence, this "plan" gives the debtor
time to regroup and reorganize his financial situation without
being hounded by bill collectors.
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