Getting Past the Fist Line of Defence
July 16, 2008
Provanta Debt Settlement negotiators receive hundreds of calls each month from creditors and collection agents. Oftentimes, these front line agents have limited authorization to accept the low settlements that we achieve for our clients.
The agents who make the first call on a case are usually not the same people who make the decisions about accepting funds for settlement. These agents are usually hemmed in by some sort of standardized speech about how if you don’t pay they may recommend litigation against you to their client, etc., etc. Sometimes, the first trick to getting a settlement is to make it past that first caller and speak to a supervisor, or at the very least, get that agent to pass your information along to a supervisor.
In one case, one of these agents contacted a Provanta negotiator, saying he was required to stick to a guideline of 50% of the current balance. The negotiator wheedled and cajoled, until the agent agreed to submit her much lower offer of 30.99% of the current balance. After a few minutes, the agent returned to the line to announce that 30.99% was an acceptable settlement and the client saved $2,082.05!
Even if a negotiator doesn’t get a settlement on the first call, it’s a mini-victory if the agent agrees to submit the offer for manager review.
(Ref. 1529)
Weekly Debt Free Clients
July 16, 2008
Total Debt Free Clients July 7 – July 11
- Total Clients Debt Free – 3
- Total Debt Settled – $63,842
- Settlement Amount – $24,684
- Savings – $39,158
- Average percentage of Settlements – 41%
- Average Program Length – 49 months
- Shortest Program Term – 36 months
- Longest Program Term – 57 months
Term Settlements
July 16, 2008
Oftentimes, Provanta Debt Settlement negotiators are able to reach a settlement on an account with term payments. Mostly, these types of settlements are paid in four months or less.
Recently, more so than before, agents are making settlement offers and extending the offer out to as many as sixteen payments. Less than a year ago it was difficult — but possible — to get an agent to extend an settlement out four months. Now they’re offering six, twelve and as much as sixteen month arrangements. While this shows us the agents have came to terms with the benefit of debt settlement, this is not particularly beneficial to our clients. The future is unpredictable, and to make a commitment that extends out more than four months is setting our clients up for failure. The gesture is appreciated, but not particularly useful — though it does come with a general flexibility that’s far easier to work with.
Weekly Settlement Statistics
July 16, 2008
Total for the week of July 7-July 11, 2008:
- Total Debt Settled – $129,237
- Total Settlement Amount – $62,300
- Settlement Percentage – 48.2%
- Total Cases Settled – 25
Best Settlement:
- Current Claim – $7,576
- Settlement Amount – $2,107
- Percentage – 27.8% (negotiated with a original creditor)
Worst Settlement:
- Current Claim – $3,080
- Settlement Amount – $2,330
- Percentage – 75.6% (negotiated with an original creditor)
Commitment
July 12, 2008
One size does not fit all. Everyone suffers from unique symptoms that require an individualized remedy. Regardless of the plan of action to eliminate debt, it takes a high level of commitment.
If you have ever worked with a fitness/athletic trainer you know this to be true. Any trainer worth their salt will tell you that in order to see results, long-term commitment is needed. Results simply don’t happen overnight. The same applies to any plan chosen to eliminate one’s debt. Too often those struggling with debt assume that there is a magic bullet that will somehow fix all of their problems.
Whether one decides on a debt settlement program, consumer credit counseling, a home equity line of credit (HELOC), bankruptcy, or simply to pay off the debt on their own, one must be fully ready to COMMIT. Success, in any area of life, requires a high level of perseverance and commitment. This is especially true as it pertains to one’s finances.
If you are struggling with debt take a few moments to think about how long it took you to accrue the debt. It is important to realize that any plan to eliminate the debt, no matter how carefully thought out, is most likely going to take several years to execute. Once you have made that decision to live cash only and live a life free of debt take a deep breath. This is going to be an endurance run and not a sprint. Focus in on the finish line with the unwavering eye of an Olympian and don’t quit until the last penny of your debt has been taken care of.
Many have traveled this path before and rest assured that you are not alone in your quest. For words of encouragement and ideas please read other blog postings on this site or give us a call to discuss your options.
Weekly Settlement Statistics
July 9, 2008
Total for the week of June 30-July 4, 2008:
- Total Debt Settled – $117,097
- Total Settlement Amount – $49,466
- Settlement Percentage – 42.2%
- Total Cases Settled – 21
Best Settlement:
- Current Claim – $1.920
- Settlement Amount – $378
- Percentage – 19.7% (negotiated with a original creditor)
Worst Settlement:
- Current Claim – $853
- Settlement Amount – $683
- Percentage – 80% (negotiated with an original creditor)
Growing Debt Among Retirees
July 3, 2008
Even though financial hardships come in many different forms, there have been certain recurring themes — such as medical hardships or job loss — that have made up the majority of clients who have sought out Provanta’s professional services. More recently, there seems to be a growing trend toward another type of hardship: retirement.
Retirement was once something people looked forward to as the great reward after years of hardwork. So how is it that retirement is now becoming a financial hardship? The title of an article that can be found on http://www.msnbc.msn.com/id/23484918 it all — “2008 retirees need $225,000 for health care.”
Our client has been collecting social security and disability income since 2001. In the past 7 years, our client has needed 10 surgeries. In March of 2006 he was returning home from a post surgery check-up and was involved in a very bad car accident. The accident caused a hernia at the site of the surgery that also resulted in severe neck and lower back trauma. Our client has required further treatment and surgeries to address these complications. The other driver’s car insurance company accepted responsibility for the accident but did not accept the fact that the medical condition and treatment resulted from the surgery. As a result, our client used the credit cards to supplement his income and pay for out of pocket medical bills.
(Ref.1528)
June’s Debt Free Clients
July 2, 2008
In June Provanta helped 28 clients complete their debt settlement program. This is the highest number of completed programs in a single month all year.
This group included people from California all the way to New York. Some of these individuals are single and some are married and raising a family. One couple is helping their young daughter raise her young child as a single mom. A few from this group have on going medical illnesses that they still have to manage in the future.
Regardless of the different backgrounds, this group has one common reason to celebrate- they have completed their debt settlement program and are now debt free!
Monthly Settlement Statistics
July 1, 2008
For June, 2008:
- Total Debt Settled – $727,180
- Total Settlement Amount – $334,528
- Settlement Percentage – 46%
- Total Cases Settled – 133
Best Settlement:
- Current Claim – $11,585
- Settlement Amount – $1,200
- Percentage – 10.4% (Negotiation entity: original creditor)
Worst Settlement:
- Current Claim – $4,121
- Settlement Amount – $3,500
- Percentage – 84.9% (Negotiation entity: original creditor)
Weekly Settlement Statistics
July 1, 2008
Total for the week of June 23-27, 2008:
- Total Debt Settled – $232,305
- Total Settlement Amount – $123,600
- Settlement Percentage – 43.1%
- Total Cases Settled – 53
Best Settlement:
- Current Claim – $8,771
- Settlement Amount – $2,066
- Percentage – 23.5% (negotiated with a original creditor)
Worst Settlement:
- Current Claim – $3,962
- Settlement Amount – $2,774
- Percentage – 70% (negotiated with an original creditor)