You accumulate the clients’ monthly debt settlement funds and engage in some pre-negotiation set up with their creditors.  When the time ripens and enough funds have been accumulated to negotiate for a reasonable settlement, usually 30% to 50% on the dollar, you pay it off and then move on to the next debt.  And so on and so forth, until the clients’ debts are eliminated over the 24 month period.  Sound simple?  It is. 

You just need to learn how credit card issuers think, how to set up the negotiation process, and how to close the deals that translate to big relief for your clients and attractive fees for you.

How do you get paid? 
The original 60% set aside amount needed for the program to work includes your fees. 

I typically charge my clients 20% of the amount I save them as the fee for each settlement.  This is a very competitive fee also charged by the big debt settlement companies. 

A typical settlement would go like this: if the client has a $5000 credit card and you settle it for $2000 (40%), then you saved them $3000.  Your fee would be 20% of the $3000, or $600 for that settlement.  You’ll pay yourself $600 from the clients’ settlement funds sitting in your trust account.  There’s no hassle involved in getting your fees.

The $2000 used to pay the creditor, and the $600 used to pay you, resulted in a 52% settlement on the dollar.  But remember, we projected that it would take  60% to settle that credit card debt.  You’ve got an 8% margin of error to cover a higher percentage settlement on the clients’ next debt, and/or cover the accumulation of interest that may accrue on some of the debts over the life of the program. 

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