The emotion one feels when they are drowning in debt is overwhelming; believe me, I know because I have been there. You lay awake at night worrying and wondering, ‘how will I find the money for the car repairs that have be done or else I cannot get to work’, or maybe ‘how will I tell my children that we have to give the family pet to the humane society because we just cannot afford the vet bills’, or maybe ‘how do I break the news to my spouse that I have just been laid off’.

Over the years I have talked to many people struggling with debt and financial problems. I few years ago, I had to convenience them that they were not the only ones dealing with and experiencing the same problems. In the midst of today's economic crisis, I find myself having very different conversations. Struggling financially does not have the same stigma it did a few years ago. Just recently, while at a social gathering, a woman, whom I had only meet in passing, initiated small talk with me by divulging the details of her recent foreclosure and loan modification.

In general, we are more open and accepting of our money problems but this is mostly because it is no secret that a majority of our society is struggling; layoffs, foreclosures, repossession are common topics of discussion. If you take this into consideration, and apply basic principles about supply and demand, its only common sense that there is now, more than ever, an enormous market of individuals seeking financial and debt help and are willing to pay for it. So, where you have demand, you have supply. Where there are customers, there is someone to sell to them, and debt settlement companies are popping up everywhere.

As a consumer you need to smart and educated. Look for a company that has the traits you look for in any company: does the website look legitimate, how long has the company been in business, are their goals similar to mine? You can also visit www.dstruth.com. This is an independent website that is becoming a forum for individuals to discuss the debt settlement industry. And, since it is independent you know that while you are reading through the material, you will not be constantly blasted with advertisements.

The pressure of increased debt is already being felt in the economy. As consumer debt mounts,

Americans will seek solutions to help them deal with their increased indebtedness. Debt

Settlement USA expects to see a 40 percent increase in the number of consumers in 2008 that

turn to debt settlement as the best solution to help them deal with financial hardship. Legitimate

debt settlement companies can help people avoid bankruptcy and get out of debt efficiently and

expeditiously by negotiating a settlement for a portion of the debt with their creditors.

Debt Settlement USA emphasizes the critical need to establish standards within the debt

settlement industry now in order to protect consumers from fraudulent and unethical debt

settlement practices. According to Debt Settlement USA, consumers and creditors should review

the practices of debt settlement companies prior to entering a debt settlement agreement. A

legitimate debt settlement company should meet the following guidelines:

• Have written policies and procedures.
• Be a member of the Better Business Bureau.
• Have comprehensive “Debt Settlement Company Certification” documentation similar towhat creditors may require for their collection agencies and other vendors.
• Have an open door policy as to regulatory agencies and vendor certification for creditors.
• Have an in house attorney with significant credit industry compliance experience and a customer dispute resolution review process.

The CDI is calculated each quarter by adding the quarterly average of the U.S. Department of

Commerce’s monthly Consumer Price Index, the Federal Reserve’s quarterly average of

consumer credit outstandings, and the Federal Reserve’s quarterly mortgage delinquency and

unsecured consumer loan delinquency rates. Consumer credit outstandings reflected in the CDI

include revolving and non-revolving short or medium term credit to individuals, excluding loans

secured by real estate. The mortgage delinquency rate reflected in the CDI is based on real estate

loans including loans secured by one to four family properties, including home equity lines of

credit. Unsecured consumer loan delinquency rates include credit cards as well as other personal

consumer loans.

Debt Settlement USA, Inc. is the leading debt settlement company in the United States, offering

an honorable and ethical alternative to bankruptcy. Located in Phoenix, Arizona, the company

currently serves over 17,000 clients, and has settled nearly $140 million in balances since

inception in 2003. On average, Debt Settlement USA settles clients’ debts for 45 to 55 percent of

the outstanding balances that are brought into the program within a period of one to three years.

Debt Settlement USA, a leading debt settlement company, today reported that the

Consumer Debt  Index (CDI) stood at 12.66 at the end of the second quarter 2008, up 7.3

percent since the end of  the first quarter and nearly 32 percent since the second quarter of last

year. The CDI’s second quarter increase reverses a steadying trend experienced between the first

quarters of 2007 and 2008.

The CDI is a statistical analysis developed by Debt Settlement USA to measure key economic

factors for American consumers who are suffering under an increasing burden of credit card, car

payment, mortgage, and other debt. It is comprised of the Consumer Price Index (CPI), consumer

credit outstandings, the mortgage delinquency rate, and the unsecured loan delinquency rate.

The second quarter rise of the CDI was driven largely by American’s soaring mortgage

delinquency rate and consumer loan delinquency rate, which includes non-secured loans such as

credit cards. Additionally, the CPI spiked slightly after climbing steadily but mildly over the past

year.

The second quarter mortgage delinquency rate of 4.33 – 99 percent higher than a year ago –

experienced its largest quarterly increase since 2007. Aside from the mortgage delinquency rate,

outstanding consumer credit grew by more than $31 billion in the second quarter 2008, and

nearly $137 billion since 2007. The consumer loan delinquency rate also increased during that

same period by 23 percent to 3.57. Energy and food prices forced the CPI, an indicator widely

used to measure inflation and price changes in the U.S. economy, up by 2.2 percent during the

past quarter and 4.3 percent in the past year.

“American consumers continue to suffer under a stagnant economy, slumping housing market,

and higher energy and food prices,” said Jack Craven, President of Debt Settlement USA. “The

Consumer Debt Index gives an accurate snapshot of the challenges facing consumers as they

struggle to make ends meet while also trying to stay out of debt. As the numbers in the most

recent CDI show, it is getting harder and harder for many Americans to financially keep their

heads above water.”

 

 

When a client of Debt Settlement USA has saved sufficient funds to begin negotiations (usually 40-50% of each debt), they contact their primary debt negotiator to begin the negotiation process.  Reaching a settlement usually takes several phone calls between DSUSA and the creditor, and there relationships, which have been established between our negotiators and the creditors with whom they negotiate also come into play.

It’s important to remember the following key components:

• While your DSUSA negotiator strives to achieve the best settlement offer, your creditor also has specific goals, which must be met to satisfy their financial bottom line.  Have you ever noticed that creditor calls increase significantly at the end of every month?  Your creditors are hungry and will seemingly use every tactic in the book to obtain payment from you.  This is why the art of negotiation is best left to those who have years of experience.
• Many creditors will offer a settlement offer at a higher percentage to entice consumers to take the deal.  However, if your creditor offers an initial 70% settlement offer and your negotiator knows that this creditor with whom they have worked over the years will settle at a lower percentage, trust is another key component in the client/negotiator relationship.  It’s not unusual for a client of DSUSA to receive a phone call from their negotiator the following month revealing a significantly lower settlement offer.  Patience is another key component.  Although it’s tempting to take the first offer, waiting an extra month or so creates a win-win for everyone involved and you, as the client, has saved a significant amount of money!
• Not every situation is win-win.  Despite your negotiator’s best efforts, your creditor can choose to take a more aggressive stance, and pursuant to the terms of your signed agreement with DSUSA, creditors can choose to litigate to obtain payment.  Settlement offers will typically begin at a higher percentage.  However, if a client is unable to meet the higher percentage, negotiation plays an important as payment arrangements can be negotiated prior to litigation.

The negotiations staff at DSUSA counts on your active partnership and cooperation to assist them in their negotiation efforts.  Regardless of how much or how little you owe, debt pressures can be overwhelming.  Stay focused on your goal to become debt free and trust the relationship, which has formed between you and your negotiator.

Negotiation is a fact of everyday life.  Negotiation is the basic means of getting what you want from others, using back and forth discussions, which are designed to reach an agreement between you and others who have shared interests and others that are opposed. 

Everybody negotiates for something. You want Chinese food for dinner and your spouse wants Italian.  Your children want to watch another half hour of television and you want them to brush their teeth and go to bed.

Not unlike a chess game, the art of negotiation actually encompasses certain collaborative strategies, including cooperation, the sharing of information, and mutual problem solving skills.  Attitude plays an integral role as does the flow of the negotiation, and effective communication and active listening skills govern a successful negotiation.

Although Debt Settlement USA is a relative newcomer to the field of debt settlement or debt negotiation, the company is one of the leaders in the industry.

In addition to hiring people who really care about its clients, a rarity in today’s business climate and culture, DSUSA has employed a group of skilled negotiators who effectively champion the interests of their clients.

The negotiations staff at DSUSA is comprised of thirty-five negotiators who collectively have over 10 years of experience between them and their managers have close to 50 years of experience, all in the field of collections.  Think about that for a minute.  Many of the negotiators who work at DSUSA were formerly in the field of collections.  In other words, these negotiators who now work on behalf of the clients of DSUSA, were once the individuals who used to call them for payment of the debts.  This is an effective tool in integrative bargaining.

If you are in debt and want to work with some of the best in the business, contact Debt Settlement USA today!

As I revealed in my last blog, I am a former debtor and this is the first time I am writing about my experience of what it used to be like, what happened, and what it is like now.  I could also call myself The Accidental Economist because as I now have money to use at my discretion, I am forced to think through things like creating a budget, living within a budget, what to do if I feel the urge to overspend (I’d love to tell you that desire is gone), and what I can do to help others live through the same experience.  This is our legacy.

My debt was not created by a medical crisis or losing a home or my job.  I created my debt because my wants were greater than my needs. I can’t even tell you that it’s because I simply couldn’t live within a budget, because I never had a budget. I existed from one moment to the next without being conscious that I was creating economically dangerous life patterns, which would ultimately lead me to being a debtor.   I’m not proud of it but I am very grateful that I finally got from under it.

As I was walking to the bus stop the other day – my reality check each morning – I started thinking about the phrase, “and forgive us our debtors”, and decided that the first thing I needed to do was forgive myself.  Reading testimonials of others who have struggled with overcoming debt provides great comfort.  If others can do it, so can I … and I have.

Recently, I reviewed some testimonials of former DSUSA clients who wrote about their experience of being in debt, what happened, and what is it like now to be debt free.

Debt Settlement USA, located in Scottsdale, AZ, has dedicated its mission to helping people get out of debt.  The people they assist come from all walks of life, not unlike my splinter group, and I find great comfort in knowing their services are available to a nation of people who are hard-pressed to make ends meet.  One cannot turn on the news without hearing about how people are losing their homes, their incomes, and their livelihoods, and must lasso what’s left of their wills to learn a new financial way of life without the cunning and baffling ease of credit cards and sometimes without much, much more.

Some people think of being in debt as irresponsible, but thankfully DSUSA does not.  They choose to believe that the people who contact DSUSA are “not unwilling but unable” and those who leave the program are wiser for the experience.

The burden of living in debt encompasses every aspect of life, but becoming debt free is a freedom that is indescribable.  I know whereof I speak.  I was once $40,000 in debt and I am just starting to learn to live an “economically-responsible” lifestyle.  Admittedly a late bloomer in all aspects of my life, I am continually humbled by the choice I made to become a debtor.  And I will talk more about this experience in subsequent blogs.

But before I close, I want to leave you with a compelling testimonial by a woman who enrolled in the DSUSA program and has become debt free.

“I remember one time when my husband and I were sitting in the car and I had a roll of quarters and I didn’t know if I should buy gas or do laundry. This was when I knew we had hit rock bottom.  I didn’t really shop around for debt settlement people, but the consultant was very understanding and I just felt relieved to talk to someone about my debt and get it off my chest. I felt I was in a dark tunnel and the consultant with whom I spoke started showing me “the light”. I only have two credit cards now with very low interest and balances. Being in debt taught me that credit cards are for emergencies only or for special, planned events like vacation.  If I want to go somewhere I use cash; I don’t use the credit cards. If I don’t have the money, I don’t go. I just keep flashing back to the day I was holding the roll of quarters.”

It doesn’t get much more real than this and it is these types of moments which I carry with me as I reflect on the deeds of my day.

I partner with a splinter group of individuals who come together for short bursts of time on a bus ride of destiny.  This mélange of souls carry with them some sort of common agenda, which I assume in my early morning haze is the going to or coming from a point of destiny that somehow fits into the overall rhythm of life.

It has been my collective experience that we are connected regardless of what we “do” on a daily basis and by “do”, I mean our occupations.  For instance, I know that Sarah with whom I ride works in the billing department of a large company which oversees the management of condominium complex in which I live.  But I was not aware of this connection until we struck up a conversation one day.  We are not friends, we are not business associates, and at some point in our lives our paths will no longer cross.  But I’m a better person for the experience of meeting Sarah.  Talking to Sarah gets me out of myself and into a different place in my head and in my heart, kind of like “The Grinch Who Stole Christmas” – my heart gets bigger and my mind expands to a renewed place of possibility.

From this place of renewal comes freethinking and words begin to flow like a river, which is a good thing because it’s currently how I make part of my living.  I call myself “The Accidental Blogger” and my blogs will appear on this site as “The Zen of Debt Settlement USA”; an alternative approach to finding Your Inner Self through personal stories of redemption and other unconventional avenues of little victories related to living debt free.  Believe it or not, they are all connected and I look forward to sharing my experiences with you all.

Debt Settlement USA, a leading debt settlement company, has announced that the number of consumers who are choosing debt settlement as an alternative to personal bankruptcy is significantly increasing.  Debt Settlement USA expects to see a 40 percent increase in the number of consumers in 2008 who see debt settlement as the best solution to help them deal with financial hardships and a weakening economy versus last year.

To learn more, check out these links!

Yahoo Financial (http://biz.yahoo.com/prnews/080514/new035a.html?.v=1)

AOL Money and Finance (http://money.aol.com/news/articles/_a/debt-settlement-usa-negotiates-record/n20080515092309990090?cid=2369)