Beating Debt News Archives

As you have noticed in recent months, “debt relief” and “debt counseling” businesses have sprung up all over the Internet, radio, and TV.  Obviously, since we are in economically challenging times, these businesses have sprung up to:

• help people become more marketable, so they can make more money to beat debt,
• counsel and give accountability to people, so they can work through all the emotional and financial struggles they are going through,
• to help people get ahead.

NOT!

Has anyone looked at any of the business models of these drive-by businesses?

Primarily there are three ways to MAKE MONEY off those hurting in debt.

1. Counsel the family that is struggling with too much debt that they need to lower interest rates, so they can get ahead.  Thereby convincing them to consolidate their loans, which is on average a lower interest rate they were paying before.  The credit card companies are somewhat happy to get their money back (but they would have liked to get the interest instead), the family is happy, because they feel they are paying less for their debt, and the consolidation company is now “earning” all the interest off the family’s debt.  There is lots of money to be made in debt!
2. Counsel the family that is struggling with too much debt that they need help paying their bills, to ensure everything is on time.  Thereby convincing them to a “debt management program”, that is a service for people to pay their bills.  The credit cards are happy to receive payment and their interest, the family is happy, because they don’t have to “worry” about paying all the bills, and the “debt management” company is happy because they are making money off the act of paying bills.  There is lots of money to be made in debt!
3. Counsel the family that is struggling with too much debt that they need to lower interest rates, so they can get ahead.  Thereby convincing them to use their service to talk with credit card companies to lower your interest rates.  The credit card companies are somewhat happy to get any kind of return on their investment, the family is happy because they are getting a lower rate, and the “debt service” company is happy because they earned a fee for doing a service.  There is a lot of money to be made in debt!

Remember these are businesses.  The point of business is to MAKE MONEY.

Let’s put this in different terms.  Since you have a problem of overspending, instead of addressing the source of the problem, we are going to exploit your problem by making money off your misery.

Please evaluate the companies that are promoting these debt counseling and debt management companies.  Make sure they are going to provide you a real service to keep your spending from ballooning like in years past.  Most of the services and products offered by “debt relief” companies can by done by yourself.  YES YOU CAN! 

We can do many things in life, when we put our mind to it.  Committing and doing what is necessary to beat debt is one of them.  There is no secret to paying off debt.  Stay away from any more debt.  Then, pay more on principle than what the recommended minimum payment is and you will see your freedom away from debt.

This a financial marathon, take your time, stay on pace, and you will achieve.

Photo by: Toodlepip

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