Debt Settlement Company - looking for investor

**debt_eliminator** · 12-31-2007 02:34 AM

Hello,

First and foremost would like to say that YE is a great resource! Just clicking around last few minutes and I have found some very interesting posts...

We are a Debt Settlement/Negotiation company out of Colorado Springs, CO and Toronto, ON. With the recent trends in the financial markets, we have switched our focus from Mortgage to Debt. The average US citizen now has over $19,000 in unsecured debt. Bottom line is, consumers need help. We have taken our sales experience from previous ventures and launched this business. Expertise in Debt Negotiation with creditors has been brought to our team from someone who has been in the industry for past 6 years. They have opened our eyes to a tremendous opportunity. Also, money has been put forward to generating a great product which helps consumers understand the debt industry.

In the weeks leading up to Christmas we have already finalized several sales.
As of right now we have a team of 2 employees closing sales with leads provided from our marketing efforts. Working out of the Colorado office. The average employee can bring in 2.5-10 sales per week. Net profit per sale for the company ranges anywhere from $400-800.

The more sales reps we can acquire, the more sales we can generate. The numbers will speak for themselves.

Looking for capital investment of $25,000 for 10% of the company. One investor only. $$$ will help us acquire 5 new employees with salaries paid over next three months. Residual income; investment shall be paid off no longer than 6 months.

PM me with your information and capital available. We DO NOT have a business plan but we are already generating sales and have successful backgrounds. If necessary, we can put together a business plan or any important docs to seal the deal.

Thank You YE

**jandmsolution** · 12-31-2007 05:28 PM

What how stupid are you. What person will invest with a company that doesn't have a business plan. Information like will be paid off within 6 months. How do you know this. You don't have a business plan. Your employees you have now aren't even busy yet with "sales." Why are you hiring more employees. "The more sales reps we can acquire, the more sales we can generate. The numbers will speak for themselves." BS. Where are you office location. I have a friend that lives in Denver who can check it out for everyone. $25,000 for 5 employee for 3 months. That comes out to $138 a week based on a 4 week month. Usually debt consolidation works on a per project deal and takes a percent of the debt elimated and adds it to what they are paying back.

**rogercbryan** · 01-01-2008 12:55 PM

Please send over a business plan rogercbryan gmail com. I would be interested in taking a look at your company.

**The_auto_God** · 01-04-2008 11:22 PM

I'm not sure how much you understand about the debt settlement business, but I would like to personally vote it for the most destructive "legal" operation in the US today.

For those of you who don't know what debt settlement really is, here's the lowdown:

You have $20,000 in credit card debt. You pay on time, but barely. Maybe a couple of cards have gone over the limit and your rates have skyrocketed to default rates (sometimes as high as 32%.) You are completely buried. What are your options? If your income is low enough, you should file for Chapter 7 (you'll know prior to filing thanks to the mandatory consultation due to new legislation Chapter 7 Laws. If you can't file chapter 7, you should file chapter 13. You will be put on a structured pay plan and will have to pay back between 10% and 90% of your unsecured debts (not mortgages or car loans, those you'll pay in full minus arrears which can be included in the bankruptcy) depending on your income.

Credit counseling services will attempt to negotiate with lenders to get lower rates or allow you to defer some payments. These typically are non-profit groups.

Then you have debt-negotiators.

They put you on a "payment plan" from 24-60 months depending on how much debt you have and how good the counselor (read: salesman) is. This plan is actually an escrow account. The first 2 payments go directly to the debt settlement firm. The rest go into this escrow account for 6 months or more. What happens to your credit card payments?

Don't worry, they'll have their legal team help you draft cease and desist letters in an attempt to stop collection efforts (it won't work.) Essentially everything you owe will go to collection agencies. In the meantime you will have 30, 60, 90, 120, 150 day lates all over your credit report. Your credit score will go somewhere between 350-450 (completely unlendable by all standards.) 6 months in you will be totally buried. If you stay on the plan you will be totally hand-cuffed for 24 months AFTER you leave the program.

How do they "settle" your debt? They wait until the debt is so old, that it's statistically unlikely for it to be collected and then offer the collectors pennies on the dollar. They'll then collect a portion of the difference from your escrow account.

Debt settlement is a deplorable, deceptive practice that ruins people's lives. Bankruptcy is sanctioned by the US government and fixes your credit within 2 years (settlement agencies will tell you 7, but facts are that you're going to get offers from lenders the day after you file.)From having been a finance manager at a dealership and a senior loan officer for a mortgage company I can assure you debt settlement/negotiation will destroy anyone who participates.

**jhize** · 01-30-2008 03:37 AM

I have somthing to add here.

First for debt_eliminator, please provide a bit more on your biz. How long have you been in business? Is your business plan drafted, complete, in use?

As of right now we have a team of 2 employees closing sales with leads provided from our marketing efforts. Working out of the Colorado office. The average employee can bring in 2.5-10 sales per week. Net profit per sale for the company ranges anywhere from $400-800.

Are you drawing revenue or is this just prediction?

AND..for The auto God,
This is my second post. I posted here partially because of the title of the thread but primarily due to your response above. I'm not going to beat around the bush, I'm recruiting. What type of resources can you bring to the table? Are you skilled in web development or is that a service you will need to acquire? Can you actively maintain a presence on a forum such as this?

I will need to exchange non-disclosure agreements with you to discuss further. Dont bother looking for my profile, Ive been a member or about 20 minutes. I'll get to it after I find the people I need.

**Iota** · 01-30-2008 04:42 AM

Think again with regards to what you want. if you want investors, give them the business plan or you will have to be out there looking for some real stupid cranks who know nothing about investing. Take time to prepare the plan, it must not be accurate but it should show some light on what you do with some real data. Go for the bull? Take th e horn.

**Bucky** · 03-17-2008 04:51 AM

Hi - good post. Please contact me.

mbanks at sky44 dot com

**invstr74** · 04-04-2008 09:13 AM

Please email me a business plan.

Originally Posted by debt_eliminator

Hello,

First and foremost would like to say that YE is a great resource! Just clicking around last few minutes and I have found some very interesting posts...

We are a Debt Settlement/Negotiation company out of Colorado Springs, CO and Toronto, ON. With the recent trends in the financial markets, we have switched our focus from Mortgage to Debt. The average US citizen now has over $19,000 in unsecured debt. Bottom line is, consumers need help. We have taken our sales experience from previous ventures and launched this business. Expertise in Debt Negotiation with creditors has been brought to our team from someone who has been in the industry for past 6 years. They have opened our eyes to a tremendous opportunity. Also, money has been put forward to generating a great product which helps consumers understand the debt industry.

In the weeks leading up to Christmas we have already finalized several sales.
As of right now we have a team of 2 employees closing sales with leads provided from our marketing efforts. Working out of the Colorado office. The average employee can bring in 2.5-10 sales per week. Net profit per sale for the company ranges anywhere from $400-800.

The more sales reps we can acquire, the more sales we can generate. The numbers will speak for themselves.

Looking for capital investment of $25,000 for 10% of the company. One investor only. $$$ will help us acquire 5 new employees with salaries paid over next three months. Residual income; investment shall be paid off no longer than 6 months.

PM me with your information and capital available. We DO NOT have a business plan but we are already generating sales and have successful backgrounds. If necessary, we can put together a business plan or any important docs to seal the deal.

Thank You YE

**BrightFuture** · 12-12-2009 09:28 AM

This reply is specifically for the autogod...

Its funny how many people like you like to open you mouth and bash debt settlement, yet Debt Settlement is one of the best solutions for consumers to get themselves out of debt. While i agree with you that low income families who qualify for a Chapter 7 should definitely file for ch. 7 BK and never go through a program like debt settlement, credit counseling, or a ch. 13. But for most consumers Chapter 7 is out of the question thanks to the bush administration..So for the majority of consumers who don't qualify for a ch. 7 they have 4 options left:

1st option: Continue to make their min. payments for 200-300 months before their debt is paid off

2nd option: File for a Chapter 13 Bankruptcy. For $40,000 in credit card debt on a chapter 13 bk plan consumer will be put in a 36-40 month plan play roughly $1,000 per month (even if they cannot afford that $800 per month that is what the court approves so they are SOL)

Lets look at the statistics of the government sanctioned program you recommend: the completion rate of consumers who file for a Chapter 13 bk is 20% or less as for the year ending 2008. So the 80% are screwed because their Chapter 13 gets dismissed for non payment because they couldn't afford that plan to begin with.

option 3 is Credit Counseling: Credit counseling typically does the same thing that a chapter 13 bk will do they will re work your interest rates and set you up on a payment plan to get you out of debt. on $40,000 in debt for a Credit counseling program your looking at a 40-48 month plan and monthly payments of $1000.00 per month. Remember when these consumers join this program and sign their contract it specifically states that if at anytime they miss a monthly payment their credits can null and void the agreements they had with them and continue to collect at the universal default rate of 29.99%. Lets look at the statistics of this option: Year ending 2008 about 20-28% of these consumers successfully completed the program. a little better then bankruptcy but still have somewhere between 72-80% of the people who still are in debt.

Option 4: Debt Settlement. Debt Settlement companies charge 15% of the debt enrolled as fees and the good ones usually collect there fees over half the length of the program so settlements can be reached sooner. Yes debt settlement hurts your credit but so does a chap 7, chap 13, and cccs. Yes creditors will harass you and attempt to collect on this debt while you are enrolled because no debt settlement company no matter what they say can stop that, yes a creditor may sue you in an attempt to collect the debt. But if you already couldn't afford to pay your creditors and didn't join a debt settlement company all those things would be happening anyway.

Now lets look at the stats on Debt Settlement ending 2008: Almost 40% of consumers who enrolled into a debt settlement program successfully completed it. Almost 95% of consumers who enrolled into a debt settlement program settled and paid at least one creditor off. So while 40% doesn't sound great its double the percentage of government sanctioned program and almost double the percentage of the program creditors recommend.

**FCDS** · 09-11-2011 11:10 AM

I agree that debt settlement companies can be a very good option. You mentioned you are in Toronto Ontario as well. Are you licensed? In Canada debt settlement companies are provincialy licensed by the Ministry of Government and Consumer Services in each province (under the Collection Agencies Act) . If you do not have this license then you are liable for fines of upto $250,000. Hense why the debt settlement industry in the U.S. has failed. No government licensing has lend to individuals and groups with no knowledge of consumer options giving advice. Now that they're getting the bad rap in the U.S. they are starting to come north. If you have obtained this license then it would be a buisness worth investing in. If not then your time is limited working illeagally in Canada.