AIG, You & Me

August 24th, 2010

money-keyWhen banks were bailed out by the government during the height of the financial crisis, many Americans felt left behind.  After all, it’s pretty clear that many in the banking and financial world bared a level of responsibility for the ailing American economy in the first place.  Why were the very same people that fueled the housing bubble and top-heavy hedge funds being thrown a life vest to keep afloat while the average American was left to drown in their own debt woes?  Indeed, much of the bailout money was taxpayer funded and so many Americans rolled their eyes, opened their wallets, and hoped for the best.

On Monday one of those banks, AIG, paid off a portion of its outstanding bailout debt.  “AIG paid back $4 billion…reducing its outstanding balance to about $21 billion.”  While that may seem like a relatively small fraction, the fact that AIG is taking initiative to pay down its debt now rather than later is at least something of a positive indicator.  If AIG fails to pay down the remaining debt, however, the burden will inevitably fall on the taxpayers.

AIG isn’t the only one with an outstanding balance.  Most Americans have at least some debt.  Debt isn’t always a bad thing but can quickly turn troublesome when not enough income is coming in and too many expenses are being channeled out.  In today’s economic climate not many of us can afford to pay for the important things we need, or at least think we need, right away.  Instead, credit and loans allow us to manage expenses over time making purchases more within our means.  But there’s a fine line between responsible and irresponsible spending of money you don’t have to begin with.

Whether it’s a student loan, car payment, mortgage, or credit card, most of us owe something.  If you find yourself biting off more than you can chew, consider getting into contact with agencies that buy debt leads and debt settlement leads.  These agencies can help negotiate down your outstanding balances.  Debt consolidation leads to improvements in your ability to manage your debt.

Often debt leads to a feeling of panic and anxiety.  This is an unfortunate reality as the stresses of everyday life can be enough without it.  While difficult, addressing your debt sooner rather than later is in your best interest.

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Atlanta Ranks High In Debt But Is Not Alone

August 23rd, 2010

credit cardsAccording to a recent article in the Atlanta Journal-Constitution, “Atlantans have the highest average balance on their credit cards in the country at $6,753 on revolving accounts.”  This may be surprising to some because recent numbers suggest that the average Atlantan carries fewer credit cards today than in years past.  Ostensibly, with fewer credit card accounts, it would seem plausible to think that Atlantans weren’t spending so much on plastic.  But with fewer cards, it appears many are spending more frequently on the few cards they do have.  This, in turn, means higher balances and paying these off quickly is not so easy in today’s financial climate.

The city of Atlanta ranks fourth in the number of Fortune 500 Companies within its city limits.  With so many big, profitable companies it seems counterintuitive that Atlantans would be leading the way in credit debt.  Then again, as the saying goes, “it takes money to make money.”

Because having good credit is so important to getting a quality rate on a loan, it could be that a lot of Atlantans are spending more on their cards to keep their accounts active.  Inactivity on a credit account will ding your credit score so the thinking goes that spending more on borrowed money will actually give you better credit.  However, paying off the balance is easier said than done.

Atlanta may be on the top of the list statistically, but there are plenty of other debt-troubled cities throughout America and so it would not be fair to pick just on Atlanta.  The excessive amount of consumer debt today is more than just a local phenomenon.  Rather, debt is a systemic problem to the United States as a whole.  The amount of America’s national debt is truly staggering and The Great Recession has made this fact all the more real.

Debt settlement leads and debt consolidation leads are on the rise as millions of Americans struggle to stay afloat.  In these tough times, partnering up with agencies that buy debt leads might be necessary in order to negotiate down your outstanding balances.  Taking on enough debt leads to future anxiety and worry.  Over a long enough time span not addressing your debt now can make a small cut turn into a large wound.

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Debt Settlement Companies Forced to Play Fair

August 6th, 2010

debt_settlementDebt consolidation companies have been under a rain of fire and bad media lately, and for good reason. Many different reports claim that debt settlement companies take advantage of their customers, often leaving them in a far worse position than when they began. Many blame the large upfront fees, along with sending money to an account set up by the settlement companies making the credit card companies come after the customers for not paying them instead. One devastating statistic is that 30 to 40% of people who file for bankruptcy first went through a debt settlement program, and over 3,500 complaints have been filed by the Better Business Bureau since the beginning of the recession. After a long and painful public outcry, the government is finally stepping in.

The Federal Trade Commission will now force all companies to not accept the fees they charge until the services that they promise, are delivered. Some states go even further than that. For example, Illinois has just passed the Illinois Debt Settlement Consumer Protection Act , a program that allows debt settlement companies to charge a maximum of $50 for enrollment, and caps the fees at 15% of the savings earned by the company. Other restrictions say that it must give warnings to all their customers, stating the dangers that exist, such as the debt not being reduced and the possibility of the consumer’s credit score being damaged.

Jon Leibowitz, chairman of the FTC, said in a statement announcing the regulations, that “Too many of these companies pick the last dollar out of consumers’ pocket and, far from leaving them better off, push them deeper into debt, even bankruptcy.” However leaders of settlement companies such as David Leuthold, the executive director of the Association of Settlement Companies, claim that this will bankrupt many settlement companies and force them out of business, however after what many consumers have been through, they may not mind that at all.

With these new laws in effect, debt settlement companies will now be forced to operate with integrity, and legitimize the profession that has received so much negativity, for so long of a time.

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Low Fico Scores, High Rate of Leads

August 2nd, 2010

fico_scores1If this recession is showing us anything, it’s that no one is exempt from the effects. According to current FICO releases, credit scores for Americans are at an all time low. In normal economic conditions, it isn’t unusual for 15% of Americans to have credit scores under 600, a category that is defined as having “poor credit.” However as of this week, 25.5% of Americans sit below 600, that’s millions more that have bad credit now, making it extremely difficult, if not impossible, to qualify for a mortgage, car purchase, or a new credit card.

What is even more disturbing about the recent statistic is that it shows that it isn’t just people with borderline credit sinking, but the number of people with spotless credit is dropping as well and has been dropping for the past 2 years. Around 18.7% of people with a credit rating of 800-850 existed in April of 2008, as of April 2010 that number has dropped to 17.9% In fact the only score bracket that increased during the past two years was 500-600, where every credit rating had a loss of percentage.

What this tells us is that everyone is being affected, not simply people who already had bad credit. With unemployment as high as it is, people are forced to buy on credit just to pay the bills and feed themselves, it’s no small wonder why credit scores are dropping.

Many people are now turning to debt consolidation companies to ease their woes. By only owing one party instead of numerous sources, that releases a lot of tension, not to mention that many consolidation companies can even negotiate lower amounts with the original debtors. With so many people dropping in credit ratings, the amount of people in debt are rising as well, pumping up the market for debt leads and consolidation companies.

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Make Us or Break Us Politics

July 29th, 2010

debt-scales-slideThe government plays many roles in our society. While all we all rely on them in different ways, sometimes their actions don’t always seem to make a lot of sense. In Arizona and California, different government actions on many levels may be viewed as a “necessary evil”, and has left the states’ economies looking like a poorly played Jenga board. One more pull and the whole thing may come tumbling down.

Regardless of where a person may stand on the situation, in Arizona, regarding their new immigration law, one thing is for certain, there will be some sort of economic impact felt. Today, Arizona’s highly controversial law, SB1070 officially goes into effect–minus the blocked provisions by U.S. District Judge Susan Bolton, and as expected protesters have taken to the streets.

The first concern for the Arizona economy is tourism, and whether or not this new law will have a negative effect on it. According to the Arizona Office of Tourism, domestic and international travelers spent $16 billion in 2009 and accounted for $2 billion in tax revenues. 157,000 travel related jobs were also generated as a result of tourism.

People stand on all ends of the spectrum in regards to the new law, with those adamantly opposed going even so far as to call for an economic boycott of Arizona. This has resulted in many annual meetings or conventions, normally held in the state, to be cancelled. Kristen Jarnagin, a spokeswoman for the Arizona Hotel & Lodging Association, estimates at least 40 groups have already cancelled their scheduled events.

Should this prove to be a long-term trend, the true concerns will soon focus on the travel industry’s employees. They may find themselves out of work and accumulating debt, while they struggle to find new jobs in an already poor economy. State and city employees as well are at risk, as revenue from travel related taxes dry up, calling for the government agencies to trim the budget where they can.

Although for different reasons, things in California are not much better. Governor Arnold Schwarzenegger has declared a state of emergency over the state’s finances on Wednesday. This is due the state budget, which is five weeks overdue, is needed to address the $19 billion deficit.

As a result, California’s state workers have once again been required to take unpaid furlough days starting on August 1. This marks the second furlough order, with the previous one ending just a few weeks ago, where workers had to take 3 unpaid days a month–losing as much as 14% of their pay. While this may not be detrimental to some, for others it may require using debt, as the only to survive until that lost income is returned. Though they shouldn’t hold their breaths, the nations unemployed can tell them how it feels to wait while government officials squabble over budgets.

If there is one thing we have learned from these times, it’s that unemployment and debt are not easy things to get out of. Debt consolidation leads and debt settlement leads are on the rise and with an entire state’s economy balancing on the edge of a knife, the volume of those debt leads may only increase.

Companies who buy debt leads can offer some relief to those in need, by providing access to quality consolidation and settlement companies, but they can only do so much. Hopefully Arizona’s travel industry can survive these sensitive times and those employed by it aren’t forced to join the rest of the nation’s struggling unemployed population.

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Congressional Bickering Creates More Debt Leads

July 20th, 2010

Today brings news of relief to millions of citizens unfortunate to be part of the current unemployment pool plaguing the country currently. After almost two months of inaction, which cost almost 2 million people their unemployment benefits, the Senate is expected to approve the extension for long-term claims. Until this news, it was a concern of many that their desperately needed assistance would never return.

As Senate bickered back and forth over where funding would come from to extend benefits, unemployed Americans hung in limbo. As they waited daily in hopes of hearing that action was taken and the checks would resume coming, how were the living expenses taken care of?

Well first usually taken care of is the rent or mortgage, obviously a roof needs to stay overhead. After that comes the essential living items, food and toiletries for instance, although they are reduced to the absolutely “needed” things. Then comes the bills, which get prioritized differently. Most people tend to pay things that can be shut off first, such as water, gas & electric and cable.

Now, unemployment benefits are a life saver, but you are probably not taking any vacations on them. If it even covers your housing costs, food and utilities you likely don’t have much left for anything else, including other bills, like unsecured debt. As well, as people anxiously await the benefits to return, in the meantime, credit cards are often where they turn to keep the lights on and food on the table.

Without the means to pay those cards off but still the need to use them sooner or later assistance will be required to right the ship once a good source of income has returned. This can turn into quality debt consolidation leads and debt settlement leads for those looking to provide an alternative to bankruptcy.

Those behind in payments due to simply living above their means are more likely default back to their previous spending habits making them a risk to be able to adhere to any settlement agreements. A safer path to pursue to buy debt leads are those spending out of absolute necessity, as they will be anxious to eliminate their debt as quickly and easily as possible, and get their lives back on track.

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Incentive Spending

July 16th, 2010

With new regulatory laws in effect on credit cards, issuers have responded by offering more incentives. Through new and elaborate rewards programs, issuers can entice consumers to sign up for cards they likely don’t actually need.  Having a lot of credit cards isn’t necessarily a bad thing but debt can pile up quickly and if it’s spread out all over it will be even more challenging to pay back.

Spending money you don’t yet have is not the wisest practice, however, it’s one that many are being forced to make in this dire economy.  In the financial climate of today, even if you have a great credit score and you are capable of making payments, banks are reluctant to lend money.  For those seeking financial aid, one has to wonder if the job market will improve by the time graduation rolls around.

Some people have dozens of credit cards, each with its own balance and particular APR.  Buying everyday necessities on credit is thinking in the short term and unfortunately a lot of those out of work or working lower paying jobs are having to think short term rather than long term.

If you find that your spending is becoming irresponsible there are companies out there that specialize in helping to manage debt.  Some are able to turn debt leads and debt consolidation leads into symbiotic partnerships which tackle your debt head on.  They will sometimes even buy debt leads and debt settlement leads because they’re that confident in their abilities to help you lower your balances.

The temptation to charge is hard for a lot of people to pass up even when they know it’s not the best option for their situation.  For the optimistic consumer, you might charge purchases now because you foresee your financial situation improving in the relatively near future.  Whether or not your financial situation does improve or not, you will be paying more later than if you had paid in cash now.  If the reward points are what lure you to a credit card, maybe you could just save up to buy what you will later ‘earn’.

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Less Risk, More Leads

July 13th, 2010

Lead generation can be a tricky thing, doing it well and ethically will prove to be challenging, but there are some practices that can make it a bit easier, and more successful.

When you’re trying to get leads from a consumer or another business, a great way to help your cause while easing the minds of those you’re dealing with is to employ what are called risk reversal tactics. Risk reversal tactics are used to take risk away from the consumer, making them feel more comfortable giving you contact information. Here are three different ways of using risk reversal tactics to help you generate leads.

Start first and foremost by offering your white paper, webinar, or whatever you are using as free. When the consumer is looking at your product, they will see less of a risk if it is already free. Another way to make risk seem lower is to offer your product at a cost while offering a money back guarantee. Since your goal is to receive their information and not their money, it should be no loss to you if they get their money back. By doing this, the consumer already feels better about the situation, and will be more likely to give valuable information.

Another strategy to employ is to make your forms optional. Allowing the consumer to fill out the contact information forms if they would like to has two positive effects for you. Not only will the consumer feel less pressured and more likely to fill out the forms, the ones that do fill them out will have a higher conversion rate than one that was forced, making for more valuable leads.

Finally, another tactic is to allow certain information fields as optional by keeping the essential information required, but allowing for less important information to be left blank. For example, you need their name and email address at the very least, but some things like home address you can do without. By doing this, once again you can get a wider array of consumers as fewer will be scared off by the idea of giving some information that they don’t feel comfortable giving.

Just remember, take some of the stress and risk off of the consumer, and the leads will get better and usually you will get more of them.

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Turn Your Debt Around, Or Your New Business May Suffer

July 9th, 2010

For small business owners and entrepreneurs, heavy debt and a bad credit score can quickly mean the end of their dreams. The biggest problem with debt issues or poor credit would be acquiring the initial capital needed to start up and sustain a new business. Convincing investors or banks you have a profitable idea is hard enough to begin with but with a poor financial history it can be almost impossible. If you haven fallen too far behind on some payments sometimes companies will buy debt leads from your original creditors, which can have a negative impact on your credit score.

The first option available to get back on the right side of things would be to file for bankruptcy, either Chapter 7 or 11 depending on the nature of the dept. This is, and always should be a last resort option, as it will be an instant red flag to any investors or lenders. Along a similar line to this would be consolidation, similar to the debt leads mentioned above, where your debt is all combined and you make one monthly payment.

Companies looking for debt consolidation leads may contact you offering to pay off your creditors all at once and then having you pay them back the total amount. While this a better option than bankruptcy, it could still have a negative impact on your company. Similarly, companies examining debt settlement leads may offer to negotiate your debt to a lower amount, but they will charge a fee to do so.

The best option to start with is try to better your financial situation the old fashioned way, by decreasing your spending.  Eliminate any extra costs that are not imperative to daily operations or even your personal life. If location isn’t crucial to your success, consider downsizing to a smaller office in a cheaper part of town, or consider working out of your home. Finding another small business in a related industry to partner up with can be a good way to share expenses and grow your company

Now that you have started spending less the next thing to do is try to earn more. Sounds easy enough right? Obviously if it was then you wouldn’t be in this situation to begin with. Expand your business in any way possible that will not require more capital to do so or even look to get a second job that may not be directly related to your business.

The last thing is to try and work with your existing creditors to work out deals on payment plans. Banks and other financial institutions will often be flexible on interest rates and late fees if they see you are being protective and committed to paying back the debt. Even with marginally reduced interest rates, over time you will find that thousands of dollars may be saved.

So keep bankruptcy out of the picture for as long as you can, cut spending, increase earnings and work with your creditors. The future may look bleak now, but with the appropriate measures and a little patience, prosperity may not be too far away.

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Social Media and Lead Generation

July 6th, 2010

social-media-logosIf you work within sales or lead generation you’ve probably seen or at least heard of the movie, Glengarry GlenRoss. This is an early 90’s film with an all-star cast and deals with a real-estate sales firm.  The entire drama of the movie hinges on the difficulty in finding good, dependable leads in order to close deals.  What separates a good lead from a bad lead can be any number of things.  In today’s sales climate, the majority of lead generating is taking place on the web.  With the popularity of social media, many have found debt settlement leads generating niche through sites like Twitter and Facebook.  So how can social media get you quality debt leads?

If you just stick to content distribution on your own website you’re really only reaching customers you’ve already established a relationship with or those who are already looking for you.  But when you post content on social media sites, your exposure becomes much wider through the far reaching networks found there.  Users on social media sites are there because they have an insatiable appetite for content.  The more users who see your content, the greater your brand awareness becomes.

Twitter offers a particularly effective tool to bring in debt consolidation leads that may otherwise remain under your radar.  Twitter offers advanced saved-search options for its users.  What this means is that you can set up to be notified when other users are tweeting about finding services.  So if you own a business you can set your search options within a specified radius and respond to leads quickly.

You can also take the time to answer questions on sites like Yahoo! Answers or other message boards and chat rooms.  If you can establish yourself as a knowledgeable source of information your online following will give you a valuable reputation.  Often these followers will become leads over the long term, or buy debt leads from you. In a similar way, social media is a good referral tool.  If you really know your stuff someone one is bound to notice, even if they aren’t the actual lead you’re looking for.  Because interconnectivity is abundant in the online world, word-of-mouth spreads fast.

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