• Skip to primary navigation
  • Skip to main content
  • Blog
  • Videos
  • Get Debt Help
  • Debt Settlement
  • Credit Counseling
  • Bankruptcy
  • Credit Reports
  • Student Loans
  • About
  • Contact us
  • More
    • Settlement FAQ
    • Media Inquiries
    • Expert Help
You are here: Home / Archives for Michael Bovee

All kinds of debt and credit help and info from Michael Bovee

Avatar

About Michael Bovee

Michael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.

Solve Loan Builder and Swift Financial Payments Affordably

March 25, 2021 by Michael Bovee Leave a Comment

Loan Builder is a business lender offering loans through PayPal that are serviced by Swift Financial. They offer competitive loans and rates like brick-and-mortar banks do. They are a good option to consider while you are implementing your business plan.

I regularly see Loan Builder offers and would put them in the mix of lenders I would look at if I needed cash to pursue my business goals. LoanBuilder provides fixed payments with no origination fee, and no prepayment penalty.

WebBank is the funding source behind Loan Builder loans.

Okay… so that is stuff you think about in good times, when we want to grow our business. What about in bad times?

What if I run into trouble keeping up my Swift Financial payments?

If you are unable to keep your payments with Swift Financial current, you have options. You can even negotiate a lower pay off, or some payment relief, but first, let us look at the totality of your situation.

How I approach helping people struggling with consumer debt is the same way I approach helping with business debts, by focusing on math.

If your business debt is unmanageable, are there moves you can make to bring your costs and expenses in line with your forward-looking cash flow? Will making those moves allow you to stay current with all or your business debts, including payments to Swift Financial?

Is your financial pinch temporary?

If you cannot stay current on all debts, can you restructure some of your loans and obligations? Would doing so buy you the time you need to deal with a temporary shortfall?

If the business cycle you are in is such that not everyone will get paid, or the reality is that you have, or are looking at winding down your business, what about the personal guarantee you gave to Loan Builder, and other lenders?

Negotiating a settlement for less with Loan Builder

Your business debt can be settled for less than the balance owed, but it is often a different animal than dealing with your personal unsecured credit card. Much of the difference comes in the form of any collateral we may have pledged when obtaining credit from Loan Builder, and other business lines of credit.

We have negotiators in our network with great experiences settling Loan Builder accounts for less. The experience you may have on the path to reducing your debt with Loan Builder will often be dictated by the type of account and collateral crossover you have in your business.

Being late on your Loan Builder account, depending on the situation, can potentially impact your inventory and vendor relationships, or your Amazon and PayPal merchant services accounts. These impacts are not a small matter for some, and are of little concern to others.

If you have the ability to keep your business open, but need to find weekly cash flow relief, it is ideal if you can talk to someone knowledgeable about your options before falling behind. You can schedule a time to speak with one of us, at no cost, below.

If you are already behind with Loan Builder, or other business loans, and need to assess your viability going forward, and how to address these loans to ensure that, or how to deal with the personal guarantee you gave that puts you at further risk, even after the business is gone, you can connect with someone below in order to help you outline a workable strategy.

Who is Swift Financial?

Swift Financial is a business lending company now owned by PayPal. It is common to see Swift Financial mentioned in loan and collection letters and documentation related to your LoanBuilder account.

Swift Financial is who services LoanBuilder loans.

As mentioned above, you may see WebBank and PayPal referenced as well.

If your loan is more than a few payments late you may already be hearing from outside third-party collection companies. That is normal, and a sign that you may need to start thinking about your strategy to deal with this before collection efforts get further escalated.

Filed Under: debt settlement, money management Tagged With: business debt, line of credit

Portfolio Recovery Associates and Solving Your Debt

February 17, 2021 by Michael Bovee Leave a Comment

Portfolio Recovery Associates is one of the largest debt buyers in the country, and one of few publicly traded in the United States. Like many of the largest debt buyers in the US, PRA buys up unpaid collection accounts, mostly tied to credit cards, from Citibank, Synchrony, Comenity, US Bank, and more.

Portfolio Recovery Associates purchases unpaid debt by the bundle. They pay less than the face value of the debts, and then use their own internal debt collectors to try to get you to pay.

Upon purchase of your account, PRA will typically make phone calls, and send you collection notices in the mail.

Starting in 2021 PRA will be able to start texting you, and even post to social media, trying to collect from you. You will have the ability to opt out of text and other forms of communications. More on that below.

Payment plans and settlements with Portfolio Recovery Associates

Settle my debt with PRA

For many years I have helped people determine the priority of the collection accounts they are dealing with by risk, potential settlement savings, as well as payment flexibility. If you want to resolve a debt with Portfolio Recovery Associates you have some options to think through.

If you can afford to settle with PRA for a lump sum you can generally negotiate a better savings outcome. Settlements are often around half the balance owed.

If you do not have a lump sum of cash to settle your debt with PRA, they are one of the more flexible debt buyers offering to spread your payments out over many months, even a few years depending on the situation. Payment plans when settling debt is a fantastic tool that can help you prevent being sued by PRA (more on that below).

Here are a few reasons why you should consider resolving a debt you have with Portfolio Recovery Associates:

  • You have the resources to resolve the debt.
  • You do not want to be sued in court for collection.
  • You have credit and finance goals you want to accomplish in the future and want this removed from your credit reports.

If you want help settling your debt with Portfolio Recovery Associates you can request a free estimate or schedule a call with a debt expert below.

Should you pay PRA?

You may be hearing from Portfolio Recovery about an unpaid debt, or see them on your credit reports, and wonder if you should even pay the collection account. Here are some reasons to consider whether you can, or should pay:

  • You do not recognize the debt as yours.
  • Your debt is passed your states SOL to sue you, and you have no credit or finance goals you are trying to reach until after the negative ages off your credit reports.
  • You have limited financial resources to work with, or to protect, were PRA to sue you (fixed income scenarios mostly).

I have talked with many people over the years who would prefer not to deal with a collection agency, or debt buyer, when paying or negotiating a debt. But once your account is sold to a debt buyer, it would be exceedingly rare to get it recalled by your creditor, so you may have to consider working with PRA if your goal is to solve the debt, even when you prefer not to.

If you are too stretched financially to commit to a half off settlement stretched out over a few years, it may be best to let things lay, even if you want to resolve your debt with PRA. If you have no assets, like real estate, and if your current and future income is limited to an exempt source, such as disability or social security, you could be protected from collections even were PRA to sue.

Request debt validation from PRA

You have a right to request debt validation from collection agencies and debt buyers like PRA. This right is outlined in the federal Fair Debt Collection Practices Act. Many of us have additional protections under a state law equivalent.

Debt validation is an important right to exercise anytime you are confused about the legitimacy, nature, and balance of a debt. You can learn more about debt validation from the CFPB, a federal agency with regulatory authority over PRA.

You may be reading this article wondering who PRA even is, and why you are hearing from them. It can be a bit confusing when you were hearing from your bank, say Synchrony or Citi, with collection calls and letters, and then suddenly you start getting calls, texts, and letters from PRA.

If you are concerned about whether PRA is the legitimate owner of your debt, a simple phone call to your original creditor to verify they sold your account to Portfolio Recovery can help you move forward with any debt resolution goal you have with confidence.

Also, if PRA has sent you a collection letter, they will typically identify the creditor they bought your account from, and often part of your credit card number, so you can identify whether you had the account at issue.

Banks have, in recent years, started to notify you of accounts they are selling to debt buyers like Portfolio Recovery Associates. Be sure to open all collection mail you get and keep track of accounts in a journal or file. It is helpful even when you cannot financially tackle an account just yet, to have access to the chain of communications that may have been mailed to you.

If my goal is to settle with Portfolio Recovery Associates, I would not request debt validation before negotiating, as it can complicate that effort.

Portfolio Recovery Associates files lawsuits to collect

It is common to see unpaid debts lead to a civil lawsuit being filed in your local court to try to get you to pay. Your risks of being sued increase based on the banks you owe, and the debt buyers they sell to. Portfolio Recovery Associates is one of the largest, and most active debt buyers suing in courts across the United States.

There is a large network of debt collection law firms across the country that banks and debt buyers tap in to. Once you have an account being handled by one of these outside law firms, your options to resolve or dispute the debt can change, as does the urgency for action.

There is more to think about when you are being sued, but I will focus this feedback on resolving the debt or defending the collection lawsuit.

If your goal is to resolve a debt with Portfolio Recovery Associates, the ideal time is before collection law firms get involved. Once the firm is involved, and even if they have not filed the lawsuit paperwork yet, settlements tend to be more costly, and often do not allow for as much time to make monthly payments.

Like most negotiations, I suggest calling to initiate the discussion, and once you reach a verbal agreement, get the deal in writing before you pay.

If you have been sued already and cannot settle with the PRA attorney for a lump sum, be prepared to sign a stipulation (formal court document) when you need to make monthly payments.

If you are settling an existing Portfolio Recovery Associates judgment, I would typically want to have a lump sum to work with before initiating negotiations.

If you dispute the validity, nature, or amount of the debt PRA sent to a collection law firm, you have options for defending the lawsuit, and using the court discovery process to address your concerns. Using the formality of the court process you have an increased ability to get all supporting documentation of their claim than you typically have with a basic debt validation request mentioned above.

Most of us do not deal with court issues enough to be familiar with the court process, and how to use it to our advantage. It may be best to run your situation by an experienced debt collection consumer law attorney in your state.

The smaller the account balance PRA is collecting on, the more it can become uneconomical to retain an attorney to fight a lawsuit.

Getting Portfolio Recovery Associates off your credit reports

If you see Portfolio Recovery Associates on your credit reports, you will want to check to see that the original creditor that sold your account is showing as a zero-balance owed. If, for example, Synchrony sold your two-thousand-dollar credit card to PRA, they would typically show a charged off account on your credit with no balance owed, and now PRA would show the balance owed to them.

Negative items on your credit reports have a seven-year shelf life. This means that Portfolio Recovery should be deleted from your credit reports at the same time the charge off Synchrony is reporting falls off. PRA does not get extra time to report.

You can also resolve the debt with PRA and take advantage of their published policy to delete the item from your credit. Whether you pay the amount in full, or settle with PRA for less, they ask the credit bureaus to delete the item.

If you do not recognize the debt PRA is reporting, you can dispute it with the credit bureaus. But if you know the debt is yours, and there is still time left in your state to legitimately sue you in court for collection, I would not try to dispute a legitimate debt on my credit reports with a known aggressive debt collector. It shows I am trying to improve my overall credit and may have bounced back financially and am perhaps a better collection target.

Appearing as a better collection target when there is still time to sue me for collection can be a form of an invitation.

Sending a cease communication letter to debt collectors

You have a right to request a debt collector like PRA cease communication with you. I would send that to them in writing if it were me. But I would also think twice about doing this, as PRA will then only be able to continue any collection efforts by suing you if there is still time to do so based on the statute of limitations (SOL) in your state.

If your state SOL is passed, sending a cease communication letter to PRA, or any debt collector at that point, is something I would do if simply ignoring their efforts was overly burdensome.

New rules that will begin in 2021 give companies like Portfolio Recovery Associates the ability to communicate with you in an attempt to collect a debt through text, email, and social media. You will be able to opt out of these methods without sending a cease communication notice, but if you use this letter, it will stop these types of efforts too.

PRA and your bankruptcy

You may find Portfolio Recovery Group has purchased your debts after you entered a chapter 13 bankruptcy repayment plan. Debt buyers are already purchasing distressed debt, but buying debts that are part of a chapter 13 repayment plan is uber distressed, so why do it?

If the price is right, it is profitable.

Roughly seventy percent of the people that have filed chapter 13 bankruptcy do not complete it. Some will convert their chapter 13 to chapter 7, where PRA would likely get paid nothing more in that event. But many people drop their chapter 13, and have to look to resolve the debts in the plan on their own. Settling debt for less than what you owe is a good alternative to chapter 13. Ideally you do this before you file bankruptcy, but it is the option of choice if you have to cancel the 13, and still cannot qualify for chapter 7 bankruptcy.

If PRA is trying to collect from you, and you are not sure what to do, we can help. If you want to talk through your options, schedule a call with me using the tab below. We can help you negotiate the debt for less, and often get you great monthly payment terms on the agreed settlement. We can connect you with experienced attorney resources that can help you too.

If you are hearing from a debt buyer like PRA, you may also be hearing from some others. You can get more information about resolving debt with LVNV Funding and Resurgent, as well as Midland Credit Management.

Filed Under: debt collection, debt settlement Tagged With: credit report, debt buyer, debt collection, lawsuit, PRA, settle debt

Settling debt with Radius Global Solutions

June 13, 2020 by Michael Bovee 8 Comments

A site reader recently wrote in to ask about dealing with a large debt collection agency by the name of Radius Global Solutions, who they are, and whether to settle a debt with them. The submitted questions are great, and as is the case with much of the site, I publish the exchange so others can learn from it.

I would like to ask you about settling a debt with Radius Global Solutions, LLC. Are they legitimate?

Radius Global collects on accounts from many different banks. I run in to them all the time. If you are curious about whether they are legitimately collecting on your account you can call your original lender and ask who they have your account out with for collection at this time. Your creditor is nearly always happy to provide the details.

What leverage do I have to get the agreement in writing or is the letter sent by the collector sufficient for an agreement and payment terms? 

Your leverage to get your settlement agreements in writing is the money you are offering to pay off the account. Nearly all collection agencies have a policy for sending you the settlement in writing once you have negotiated a deal.

If Radius has already sent you a settlement offer in the mail that you like, and can afford to pay, just be sure you are acting on the letter by the expiration or due date. If you need a new date you can call Radius Global and negotiate a new date, and get a new letter.

In general, what cases does the “settled” portion of a debt greater than $600 get taxed and in what cases does it not? In the cases it is not taxed, what specific terminology is used in the agreement between the collector and the payee to ensure that it is not taxed?

Generally speaking, all settlements where you save in excess of $600, should result in a 1099c the following January. Having been at this for a while, I recall a time when no one got them. Nowadays few do not.

There is no effective language or negotiation tactic I can provide that results in a creditor or debt owner agreeing to ignore a known tax reporting obligation. There are some instances I have seen though, such as when there was active litigation, the settlement has resulted in an agreement not to report. Not sure the IRS would be cool with it.

Radius Global, as a contingency collection agency, collects on the debts of others. I highly doubt they are in a position to ever negotiate anything about tax reporting.

You do have the ability to submit IRS form 982 to show you were technically insolvent at the time of settling, and should not owe a tax.

Radius Global Not Known To Sue

The reader submission went on to ask more generalized questions. Some of my answers tie in to all debts, and some are specific to Radius Global, such as the fact that, as a contingency collection agency, they do not file collection lawsuits.

Finally, in general, is my following assessment of debt collection accurate? 

It is best to settle with the credit card company. They will likely close the account for this.

Your accounts are typically closed after a few months of missed payments. By the time you are settling for the best savings you should already be dealing with a closed account. If you are not, yes, settling for less would close the account.

It is not necessarily always true to say that it is best to settle with the original creditor. There are some creditors that use Radius Global for collections where I would get a better settlement savings outcome from Radius than I would the creditor.

Getting more than 3 months to pay on a settlement is much more likely after an account gets charged off and placed with a collection agency like Radius.

If the account goes to collections, is it best to settle with the collector instead of being sued?

Nearly every time this would be true, but there are some limited exceptions to this. One would be when you do not have enough to settle an AMEX account that Radius may be collecting on, and you can use the formal collection process in the court to your advantage.

A charge off occurs from the credit card company when the debt is not paid for a period of time. This event damages the credit score.

Yes. Most of the damage is done leading up to the charge off, but that is the pinnacle of negative impact from an unpaid credit card.

Another hit to the credit score occurs when the debt is paid to a collector.

Not true. Many of us will only see a benefit immediately, and there after, from settling and paying a collection account.

There are many instances though, when settling an old and stale unpaid collection account, that paying can bring a certain level of freshness to the negative. I do see temporary dips to credit scores in some of these cases. And there are scenarios where peoples expectations are to see their credit scores jump after settling 1 out of 5 collections, which is not always going to be the case. Several other things could be holding back improvements.

Another hit occurs to the credit score if a lawsuit is settled regarding the debt.

This has not been true since July 2017 when most of us saw the removal of judgments showing on the major three credit bureaus.

It is best to pay a non profit debt management firm instead of a debt collector as the event will remain on the credit report for less time, like 3 years instead of 6. However, to do this, involves a total survey of your debts and ability to pay a monthly amount to resolve the debt through the third party. In some ways, it is similar to filing bankruptcy but it is not as extensive and involved.

This is not accurate. Debt management plans with credit counseling agencies last up to 5 years. If you enroll a collection account with Radius Global into a plan like this, none of those monthly payments are getting reported. If the plan goes the distance, your credit is going be much worse than if you settled with Radius for less and paid it off much quicker.

The similarities between a DMP and a chapter 13 bankruptcy start and end at:

  • Creditors are getting paid (though in chapter 13 not necessarily in full).
  • The plans tend to go 5 years.

Thank you and keep safe and healthy!

You too! I invite you, and all readers dealing with Radius Global to post in the comments below with experiences and for feedback.

Filed Under: debt collection, debt settlement Tagged With: collection agency, Radius Global Solutions

Resolving Debt with Velocity Investment LLC

May 5, 2020 by Michael Bovee 8 Comments

If you are hearing from Velocity Investment LLC it is likely because they have purchased an unpaid account from one of your creditors.

Velocity

Like with many debt buyers, Velocity bids on accounts that have gone unpaid more than 4 months in the case of fixed loans, and more than 6 months late in the case of credit cards (though I do not see Velocity buying unpaid credit card debts at the time this is being published).

What debt buyers pay for the legal rights to collect debt gone bad can vary based on the creditor selling, the economic climate, how long ago payments ceased, whether the accounts have been sold in the past, and other details.

What a debt buyer pays for the legal rights to collect from you really does not come in to play when you want to resolve a debt with a company like Velocity Investment.

What types of debt does Velocity Investment buy?

As of right now, if you had a loan with Prosper, Lending Club, Upstart, and a few other market place lenders, you could be hearing from Velocity.

I have seen them buy up the accounts from Lending Club and Prosper right after your accounts charges off, so around 5 or 6 months after you stopped paying on your loan. I also see Lending Club send accounts out to an external debt collection agency for a round of phone calls and letters before they sell to Velocity (or other debt buyers too).

Upstart and a couple of other online lenders are pretty much the same timeline for when they sell unpaid accounts to Velocity and others.

You may get a letter from your lender where they clearly tell you they have now sold your account to Velocity Investment.

Using external collections and law firms to sue.

Like most debt buyers these days, there is an element of risk to not proactively trying to work things out with Velocity Investment LLC once you hear from them. They use a handful of collection agencies to write to you and call you in order to collect.

CKS Financial is one of a few collection agencies they use. CKS also bids on, and buys debt from, some of the same lenders that Velocity does.

It is not overly problematic to hear from collection agencies who do not sue, as they will have the account for a few months before Velocity pulls it back if the agency cannot get you to pay.

It can become a problem when you are hearing from collection law firms debt buyers like Velocity Investment sends your account to.

There is a massive network of collection law firms around the country that banks, lenders, and debt buyers can tap in to. When you hear from one, and they are licensed in your state, it typically means they are authorized to sue you in order to collect.

Settling and paying your debt

Any debt Velocity Investment has purchased is already going to be charged off. That means your credit already took a hit. You are not going to get anything extra out of the situation by paying them in full compared to settling for less. That being the case, settling proactively will save you money and prevent being sued.

If you have the resources and the inclination to negotiate and settle debts with Velocity, they are pretty easy to deal with. You can call them and negotiate using many of the tips I highlight through out this site, and in videos about how to talk to debt collectors.

If your Velocity account is with a collection agency, negotiating is much the same as dealing with any collector, but if the account is with a collection law firm, I typically suggest getting help.

Generally I have found the best results on settlements with Velocity Investment, no matter if negotiating directly with them, a collection agency, and certainly a collection attorney, to come from working with a professional negotiator. Not just from an amount saved on the settlement perspective, but with getting as much as a few years to pay the agreed upon amount, getting everything documented up front, and set up correctly.

Velocity Investment on your credit reports

It is common to find debt buyers on your credit reports. Velocity is no different. Some debt buyers have developed policies for removing their credit reporting when you resolve a debt with them (whether you pay in full or not). At the time I am writing this Velocity is not one of them, but more debt buyers are starting to do this, so stay tuned.

If Velocity is credit reporting, when you settle with them, like any other company furnishing information to the credit bureaus, they will need to update Equifax, Experian and TransUnion that you no longer owe the debt, and that it is a zero balance, paid collection.

Do not get hung up on whether they show on your credit as settled for less, or anything else like that, as the words on the credit report are not important, but the zero balance, debt no longer owed is.

If you would like help settling your account with Velocity Investment LLC, we do that! You can schedule a call to talk with me about it here:

https://calendly.com/debtbytes/15min

If you have questions or concerns about dealing with Velocity Investment you are welcome to post in the comments below.

Filed Under: Uncategorized Tagged With: debt buyer, payments, settle debt, Velocity Investment

Credit One Bank Debt Settlement and Payment Plans

August 29, 2017 by Michael Bovee 4 Comments

If you find yourself unable to keep up with bills, and you get to the point where your payments with Credit One Bank are going to be late, it may be time to look into your options.

Credit One is closer to the sub prime credit card category. They are a great option for rebuilding or starting to build your credit. The credit limits they offer are generally on the low side, and the interest rates on the cards not as competitive. And for that reason, lets start with some conventional wisdom.

Credit One

Can you afford to pay all of your monthly bills and still have enough left to apply $50 (or so) to your highest interest credit card? If so, look into using a debt snowball strategy to paying off debt quickly.

Getting Credit One to lower your interest rate.

If you cannot apply the debt snowball method, what if you were to get Credit One to reduce your interest rate? In fact, you may want to look at your options for lowering your interest rates on all of your credit cards.

First off, you can call Credit one and talk to them about things getting tight and see if you qualify for a temporary or long term hardship repayment plan. Most banks will listen to your financial hardship and see if they can get you qualified for lower monthly payments for a few months, and all the way through paying the balance off over a 5 year period.

If Credit One cannot qualify you for any internal hardship plan while you are current with payments, they may offer one to you after you have missed a payment or two.

You can also get monthly payment reductions from Credit One by working with a nonprofit credit counseling agency.

Settling with Credit One Bank.

If you have passed the point of no return with Credit One it may be time to look at your options to settle for less than what you owe. You can target your settlements with Credit One for less than 50% of the balance once you are more than 5 months late.

Credit One tends to offer lower credit limits. This can make it an easier path to raising the money you need to settle with them. If you are thinking of negotiating with Credit One on your own, be sure to check out my 10 part series about how to negotiate with your banks. If you would like to have a professional negotiate for you, I can help you learn more about that when you submit for debt help.

You may end up dealing with an outside debt collection agency that purchased the legal rights to your debt from Credit One. Currently, Midland Funding is purchasing unpaid credit cards from Credit One. Check out that page for options when dealing with Midland. They are one of the easier debt buyers to deal with, and they have a credit reporting policy like no other collection agency at this time (in a beneficial to you way).

If you have more than just Credit One to contend with, it may be better to submit for help and see how we prioritize your creditors. It is free to get a debt settlement summary, and it can be important to prioritize the money you have in order to settle for the best savings, or to eliminate collection risks. And that can mean Credit One, while being a smaller balance, and a quicker win, should be 3rd, or even later down the line for money.

Filed Under: credit counseling service, debt settlement

Reduce Credit Card Interest Rates.

August 8, 2017 by Michael Bovee Leave a Comment

Readers regularly write to me asking what options they have for lowering credit card interest rates. Many people inquiring about consolidation are making monthly payments on time, but are only barely getting by, and some months end up taking money from one credit card to pay another, and are running out of balance transfer options.

If you are stuck in a similar situation, here are three common ways you can reduce your interest rates on unsecured loans and credit cards.

Consolidation loans

You take out a consolidation loan and use all of that money to pay off the credit cards and higher interest personal loans.

Your current debt to income ratio may prevent you from qualifying for a debt consolidation loan in the size that you would need to fully pay off all of your credit card bills.

In fact, I do not see unsecured consolidation loans as high as many of us would need these days.

If you are only able to secure half of what you would need to consolidate, it still could make sense to use a consolidation loan to lower monthly debt servicing costs, just less so.

Debt Consolidation Company

You can use a debt consolidation company for their established relationships with your banks in order to combine all of your balances into one smaller monthly payment, and pay that same fixed monthly amount of money until all of your credit card balances are eliminated.

I cover the benefits and drawbacks in this article series about debt consolidation counselors

You can call my hotline 800-939-8357 and choose option one to speak with a counselor and get an accurate quote for what your lower interest rates would be, and how much your monthly payments will be reduced.

Credit Card Hardship Plans

I cover how to get your credit card interest rates reduced by yourself. Much of that article series relates to recession era bank policies. But I am now seeing several credit card banks return to that era’s hardship plans due to COVID 19.

If you are unable to get your banks to work with you on long term hardship repayment plans (at seriously reduced interest rates) they may still give the debt consolidation companies the lower interest rates for the life of your balances.

The more credit cards you have to attempt to get lower interest rates from, the more of a juggling act it can be doing self administered hardship plans. Because calling a credit counselor is a fairly quick and free way to get a baseline monthly payment quote, I typically suggest starting with that call. You take the quote and sleep on it for a few days, or weeks, and compare that to the debt consolidation loan interest rates and amounts you qualified for.

If for any reason you determine your situation is now beyond debt consolidation being helpful, and you want to compare consolidating with settling debts for less, you are welcome to schedule a call with me, or requesting a debt settlement quote below.

Filed Under: Uncategorized

Resolving Debt with Synchrony Bank

April 20, 2017 by Michael Bovee 79 Comments

Many branded store, and specialty credit cards, are serviced by Synchrony Bank. If you are wondering whether you card is serviced by Synchrony, I provide a list of known businesses that use them below.

As you can see, Synchrony is not just about its flagship relationships like Amazon, and Care Credit. They do a ton of financing with fuel stations, and other auto related purchases we all need, as well as major clothing stores like Old Navy, American Eagle, and many others.

There are other credit card servicing platforms for large and small retailers, like Comenity Bank, but Synchrony is the largest. They have millions of customers.

Can’t Make Payments on a Synchrony Credit Card?

late paymentsIf you miss a payment to Synchrony, they are likely going to charge a late fee. If your situation is such that you can get the payment and fee to them prior to your next billing cycle, you can avoid being reported as 30 days late on your credit reports.

If you are dealing with something more than a one month financial hiccup, you may want to call Synchrony, after already being late, and ask about any hardship repayment program they may offer to you. But be sure you are confident you can follow through with any reduced payment Synchrony offers on a continuing basis.

If your situation is one that causes you to miss more than one payment, or you have too many accounts that you are juggling, it may be time to seek out a more permanent solution.

Getting Help with Synchrony Debt

You may have passed the point where temporary relief, or Synchrony waiving a late fee, is going to be helpful. This is often the case when you do not have enough income to meet all your bills each month. When this happens, you are typically looking at the following 3 mainstream methods for getting debt relief.

  1. Enroll in a consumer credit counseling program and get all of your credit card debts under control. Review that link for a complete understanding of how credit counseling can help you. The gist is that your interest rates are reduced through agreements the counseling agency has with Synchrony and your other lenders.
  2. Be late enough with payments to Synchrony in order for them to settle with you for less than what you owe. I often target Synchrony settlements at 40% of the balance owed (there are reasons to aim lower, or accept higher). You can sometimes split that up into 3 months if your account has not been charged off. And you will often find you are dealing with debt collection agencies and debt buyers the longer your account has gone unpaid.
  3. You could file chapter 7 bankruptcy and wipe out all unsecured debts. Be sure to review your situation with an experienced bankruptcy attorney. There are income and asset considerations for each state that can vary, and prevent you from filing.

Anything but paying Synchrony on time, all the time, is going to have an impact to your credit score, or your ability to access new credit products and loans. Be sure to review this article about how debt relief hurts your credit before you make any assumptions. The truth may surprise you.

Things may not be simple

There is usually more to think about when your settling debts with Synchrony. Most of us have more than one debt we are struggling to keep current, and Synchrony balances may be the lowest on our list. In fact, the smaller the balance (less than $1500), I will often discourage falling behind if it can be avoided.

It is also important to point out that Synchrony is one of the few lenders that will refuse to send you a written agreement, or settlement letter, outlining what you negotiated with them over the phone, until your payments are set up in the system. I typically encourage you to record the phone call where you are covering all that you are agreeing to with them. Use an old-school tape recorder on speaker phone, or download one of the free apps. Be sure to tell them you are recording that portion of the call and why (they will not release a letter). Hold that recording until your letter arrives (they do send them).

Check out this video where I cover negotiating with Synchrony in more detail:


Be sure to reach out via the get help button if you want to talk through your options with someone. I can often answer basic questions via email, and you have the option of scheduling a 15-minute free call.

Here are the more common retailers and services that provide credit cards through Synchrony. Not all of these accounts will settle the same way, or for the same amount, but most do.

  • 76 Gas
  • AAMCO
  • ABC Warehouse
  • Abt Electronics
  • Amazon
  • America’s Tire Store
  • American Eagle Outfitters
  • American Signature Furniture
  • Ariens and Gravely Get the Gear
  • Art Van
  • Ashley Furniture HomeStore
  • Athleta
  • Banana Republic
  • Bargain Outlet
  • Belk
  • Bernina
  • Big Sandy Superstore
  • Bjorn’s
  • Bomgaars
  • Boris Home Furnishings
  • BP Visa
  • Briggs & Stratton
  • Brooks Brothers MC
  • Car Care One
  • Care Credit
  • Carpet One
  • CheapOair / One Travel
  • Chevron / Texaco Visa
  • CITGO
  • City Furniture
  • Conoco
  • Dick’s Sporting Goods MC
  • Dillard’s Amex
  • Discount Tire
  • Dream Bed
  • Drexel Heritage
  • DX Engineering
  • Ebates Visa
  • Ebay MC / Paypal MC
  • Electronics Express
  • Ethan Allen
  • eXmark
  • Field & Stream
  • Flooring America
  • Freedom to Ride
  • GAP
  • Goldsmith Store
  • Golf Galaxy
  • Google Store
  • Guitar Center
  • Haverty’s
  • HH Gregg
  • Hudson’s Furniture
  • Husqvarna
  • Hyde Park Jewelers
  • JCPenney
  • Jewelry Exchange
  • Kauffman Tire
  • Kraft Music
  • La-Z-Boy
  • Lee Michaels
  • LensCrafters
  • Levin Furniture
  • Living Spaces
  • Loves
  • Lowe’s
  • Lumber Liquidators
  • Maaco
  • Marvel
  • Massey Ferguson
  • Mattress Firm
  • McCoy’s Building Supply
  • Meineke
  • Men’s Warehouse
  • Metro Mattress
  • Midas
  • Mills Fleet Farm
  • Mohawk Flooring
  • Musician’s Friend
  • Napa EasyPay
  • Nautilus
  • Newell
  • Old Navy
  • Olejo
  • C. Richard & Son
  • Pearle Vision
  • Pep Boys
  • Phillips 66
  • QVC
  • Raheem
  • Reeds Jewelers
  • Regency Furniture
  • Rooms To Go
  • Sam Ash
  • Sam’s Club MC
  • Sewing and More
  • Shaw Floors
  • Shaw Floors
  • Shelly’s Furniture
  • Sleep Experts
  • Sleep Number
  • Sleep Train
  • Sleepy’s
  • Sony Store
  • Specialized
  • Star Lumber
  • Stash Hotel Rewards
  • Stein Mart MC
  • Summit Racing Equipment
  • Sunglass Hut
  • Sutherlands
  • Sweet water
  • System Pavers
  • Thomasville
  • Tire Pros
  • TJ Maxx
  • TJX Rewards MC
  • Toro
  • Toys R Us MC
  • US Appliance
  • Value City Furniture
  • Value City Furniture
  • Vine Live / Shop HQ
  • Walmart MC
  • Westrich Furniture & Appliances

Remember, Synchrony is one of the largest sellers of unpaid debt to companies like Portfolio Recovery Associates, Midland Funding, and Cavalry Portfolio. It is often more ideal to get affordable help to settle when you are dealing with debt buyers. The help can end up paying for itself.

Filed Under: credit counseling service, debt settlement

Debt Collection: Something Different This Way Comes

July 18, 2016 by Michael Bovee 10 Comments

By some estimates, more than a third of the adult population in the US is going to come in contact with a debt collector at some point. If you have never had to deal with debt collector before, your only exposure to the industry could be from the media, and perhaps by way of this hilarious anecdote about debt buying from John Oliver. Or, you may have tuned in to random soundbites on the nightly news promoting wariness about debt collection scams that flare up.

Count yourself lucky if you have missed out on financial setbacks and have not had to contend with collection issues. Count yourself luckier still if your contact with the legitimate collection side of the debt and credit industry was only in the last couple years.

You are the luckiest if you first come in contact with a debt collector in the near future, say 12 or more months from now. I say this with confidence because the wild west days of debt collection are over. Some people just have yet to catch up with this fact.

Whats different about debt collectors today.

I’ve discussed much needed changes in the debt collection marketplace in the past, but you may be surprised (I still am somewhat) that we are fast entering a time where debt collection is highly civilized (said with a lilt in my voice from Old Spice commercials).

Because of rules and law changes at the state level, and also due to CFPB investigation and enforcement actions against banks and debt collectors, there is much that has changed over the last few years in the debt collections landscape. I want to touch on some of the most dramatic developments that have already influenced collections first, then wade into what debt collections may look like as soon as next year.

Debt collectors made changes in some of the following ways:

  • Starting with the recession, and record credit card default rates, debt collectors at banks and at the larger third party agencies took on a “we are here to help the customer” tone. This stood in stark contrast to the more normal stern sounding, stress the customer out – your full balance is do right now – debt collection tone that existed prior. Record default rates are no longer, but the change in tone of debt collectors largely stuck.
  • Legitimate debt collectors are far more compliant with existing rules and laws than ever before. Things like not calling before 8 am or after 9 pm, or the frequent calls to family and neighbors under the auspices of “locating the consumer” (when they already confirmed your address and talked to you on your phone 3 days ago) happen only seldom, and when they do, it is likelier today you are dealing with a blatant collection scam (I have another article coming next week about the rash of scams I am seeing of late).
  • Banks are putting collections agencies they work with under much higher scrutiny and auditing them stringently. You really have to have your ducks in a row as an agency to get accounts from anyone other than small local creditors and service providers. This has cleansed some of the questionable actors from dialing for dollars all by itself.
  • Banks have to follow new OCC guidance about who they may sell accounts to (transferring the legal rights to unpaid debts is quite normal since the 1990’s). This guidance from a primary regulator like the OCC has been compounded by federal regulatory action by the CFPB against major banks, debt collectors, and debt buyers. The affect of this has been less debt for sale, though that market may be thawing. More on this development below. But suffice to say that the John Oliver video I linked to above would have been much more applicable, say 6 years ago, than today. While I laughed throughout the video, most of the concerns it raised are already managed by state and federal regulators in just the last few years, and will be even more so in the months ahead. While buying a portfolio of really old, out of statute to sue in court medical bills is unfortunately still possible, you would not be able to buy fresh default credit card debt how Oliver did.

Debt collectors and new realities.

There are only a few states with what I would consider excellent consumer protections from certain debt collector practices. California recently enacted the Fair Debt Buying Practices Act, and New York is getting serious about how collectors interact with its residents. There are several states considering legislation to further protect people from questionable collection practices. Regulators have already made meaningful impacts by issuing new guidance to banks, and through existing and pending enforcement actions.

Regulatory actions from the CFPB against the largest credit card issuers, debt buyers, and a large collection law firm, set beside new bank guidance by the OCC regarding how banks sell or place debt for collection, have combined to give somewhat clearer visibility of more formal changes to come that bring a national impact with them.

Fair collection practices for collectors.

Some existing actions prevent the sale of debts that cannot be properly documented to the standard a court may set, or that have been part of a bankruptcy filing. Other actions prevent how or when someone will be sued by a debt collector.

Last week the CFPB announced an upcoming July 28th field hearing about a required small business impact study regarding proposed debt collection rules. We should get to see more details about those proposed rules for the first time in nearly 2 years.

Here is a wish list of a sort that I hope to see changed nationally, and with all players, when it comes to debt collection.

Debt documentation.

Similar to the provision of the FDBPA in California I mentioned above, we need every flavor of debt collector (whether banks collecting post charge off, a collection agency, collection attorney, or debt buyer) to provide every consumer making payments an accurate accounting of how those payments are being applied.

It is ridiculous the trouble people express to me about making payments to a law firm or collection agency, and sometimes for years, without any invoicing and billing system to reflect the amount remaining owed. They try in vain to get some kind of accountability and get nowhere, and that is because it is often not required. It is shameful we have gone as long as we have without this fundamental math being readily provided.

I believe legitimate collections over payment installments would actually increase the more the consumer could see what is left owing. And the debt collection industry as a whole would gain a huge bump in credibility if accurate payment invoicing were the norm.

And while we are on the subject of debt documentation, it should be required that all debt collectors (banks too) are required to send consumers an outline of what they are agreeing to accept as payments, or settlement in full, prior to the consumer remitting the first monthly payment, or full settlement amount, on charged off debts. This practice became widely adapted by the entire industry during the recession, but there are still notable exceptions. Synchrony, a huge branded credit card issuer, still messes with consumer confidence by delaying documentation,  and Portfolio Recovery Associates, the second largest debt buyer in the nation, appears to think its okay too.

If I am the OCC I would want to know why Synchrony values this practice. And if I was thinking about selling debt to a debt buyer like PRA, I would think twice until they got this ridiculous “no soup for you” policy in line with what they partly already have to do for newly purchased debt in California.

Post charge off interest.

Just because you can does not mean you should. Banks charging default interest when accounts go bad is part of the carrot/stick principle of lending. It is also part of the “what the crap… how is making an un-payable debt more un-payable going to help you collect” question I have had for years.

If the IRS is not going to treat an amount as income if cancelled or forgiven, than why have post charge off interest at all? Someone with a huge data set please run the numbers and show me the meaningful benefit when you measure balance accretion on the 1/5 of the accounts that go more than 90 days late (that will ever be collected on), against the safety and soundness principles of our banking system, and the confidence of consumers and the public dealing with collections.

Is that return a benefit to lending practices as a whole? Is there more to be gained by eliminating post charge off interest from accruing? My guess is NO to the former, and YES to the latter.

Bank and creditor notifications.

Some early indications from recent regulatory action is that large credit card issuers are sending what many call a “Goodbye Letter”. This is the bank notifying a former customer – that could not keep up required minimum payments – that their account has been assigned or sold, and who to.

These types of consumer notices will help a percentage of people – who are still trying to actively manage their financial setbacks – to know who is legitimately collecting, and to be prepared for future communication and resolution efforts.

I imagine better lettering to consumers will help everyone in the collection life cycle. I hope this becomes a required practice.

Attorney fair collection rules carve out.

Please… for all that is good and gracious… do not carve out attorneys from new rules designed to protect consumers. Attorney collection abuses are no different than any other debt collector. In many cases it can be worse, as judgments lend credibility to bad practices and the impression that bad acts and practices are court sanctioned.

I have participated in regulatory changes at the federal level. Attorneys were provided some limited carve outs from consumer protection in debt relief. That door left ajar created 100’s of millions of dollars of consumer abuse (that we know about so far).

According to Jared Strauss, a former debt collector for attorney and non attorney agencies “If attorney’s are carved out – regular collection agencies could largely cease to exist”. Jared has keen insights into debt collector behavior, such as how debt collectors look at your credit, and why debt validation letters can cause trouble. I share his concerns.

The abuse we have seen in legal collections is not limited to the court procedural stuff, such as running collection mills with attorneys supposedly supervising thousands of cases a month, affidavit and notary chicanery, or the foundation lacking to prove a claim once it is brought.

Employees that man the phones for debt collection attorneys are some of the most egregious offenders when speaking to consumers.

Beware the unintended consequences.

Fair collection rules for banks.

I have called out some of the best banks out there for how much of an improved debt collection environment they created for their card members and customers for unsecured accounts. Much of those changes came as a result of the recession. And like I mentioned above, the changes have largely stuck. But as can be seen from consent orders between the CFPB and banks, there is reason to extend fair debt collection rules to credit issuers.

If credit card originators were subject to debt collection rules it may lead to some banks assessing the benefits to internal collections. They may opt to outsource all collections after 90 day defaults. Some banks who are not selling debt, like American Express and Discover, may start to look at the benefits of that type of recovery. Maybe Wells Fargo will sell debts instead. If collectors there blatantly lie to me, what can the consumer expect?

Compliance and legal costs at originators, set beside expectations on recovery from post charge off collections, may create a more robust collection space. And that space may soon be filled with nothing but meaningfully regulated entities, rather than years past where we are left to point to the cleanest dirty shirt.

The changes I know would benefit consumers and the collection industry alike are not limited to those above. There are many nuanced things to come that I will cover in greater detail here and on the Debtbytes video channel.

Filed Under: banking practices, debt collection

First Progress Secured Credit Card from Synovus

February 6, 2016 by Michael Bovee 7 Comments

Earlier in the week I engaged in a string of comment replies with a reader who had paid some old collection accounts and is working on rebuilding his credit and improving his FICO score. We exchanged some comments about getting approved for a First Progress secured credit card as a tool to start rebuilding his credit. I asked him to submit his experiences (as he was so thorough in his comments) so we can start a new page.

You can read the original comment exchange about paid collections now on his credit reports. What follows are Jason’s own words about his experience researching the First Progress secured card, and what lead him to choose that card over others.

Here’s the whole story!

Declined for an unsecured credit card.

Michael, thanks for the suggestion! I did try Cap One and they declined and provided me with my credit score on the low end mentioned above (521). I went online and researched the Better Business Bureau and found a secured card by First Progress (Synovus Bank) Rated A+.by BBB. I carefully read all reviews, complaints and resolutions and got a good grasp of not only how they operate but how they respond to complaints.

I learned a lot about the ins and outs of working with them. A lot of the complaints [about the First Progress card] revolved around insufficient knowledge of methods of payment, times to process payment , length of time it takes to process an application, etc. I’ll leave it to the reader to research on their own via the BBB website.

I did go ahead and apply and fund the First Progress card. The $200 security deposit is quite a lot to me, but might be worth more than many times the investment over the long term. They do report to the three major credit bureaus unlike some outfits such as Fingerhut. They do caution that this also means NEGATIVE behavior is also reported.

I called customer service and even though I was not yet a customer, I was able to ask pointed, directed questions regarding the application, approval and monthly payment process. The Synovus rep was very helpful and courteous and confirmed what I had read in the BBB reviews as to their company practice. If I am not approved, they will return the $200 via ACH (mine was $200 but amounts can vary from under $100 to as much as $300); generally according to the rep, unless you have open fraud on your record or open bankruptcy most are approved. We will see.

credit card

The bottom line is you have to do research and I am planning for the day when I get better to be able to have a more positive credit rating so I can get back on track again. This entire experience has been a lesson and your pages have been invaluable.

Review of First Progress secured credit card.

I checked and read through most of the comments, complaints and resolutions about the First Progress secured card. An A+ by the BBB rates highly in my book and I don’t mean to seem like an advert! The First Progress website is available online and I am not here to advertise.

My initial read through of the home page was rather straightforward. It explained how the process works and that they do report to the three credit bureaus and who the underlying bank issuer is.

The “About the Program” section goes a bit deeper into the weeds and requires careful reading. This could stand to be cleaned up a little. How to apply explains the three classes of cards credit cards they offer with a lower annual fee and a higher APR to a higher annual fee and lower APR; it does state if approved for one, you are approved for any. As always, read the important disclosures.

The FAQ page is generally helpful, the one thing lacking is a well defined and easy to define customer service number as they gear heavily toward written or online customer service. Fortunately, the BBB web page customer service number is valid and is listed as (866) 706-5543.

Upon calling, I had to navigate the ever popular IVR and enter 0# repeatedly when it prompted for a card # to get routed to a rep. Once I reached a rep, I stated I was not yet a customer but had applied and both times I called, I was treated well, respectfully, courteously and the rep went in to check the status of the application. Using the questions and points garnered from the BBB complaints/resolutions I asked the same questions and received consistent answers.

One important fact (discovered from reading BBB issues) is they rely on mailed in payments or payments over the phone for which there is a $10 charge (for phone). They heavily promote bill pay transactions instituted from your bank (for which there is no charge and no hold period). There is a 10 day hold period on crediting mailed in payments which has resulted in some unexpected late charges, so folks want to MAKE SURE THEY ACCOUNT for that. ***you may want to verify this as I am digesting A LOT of information*** I am certain this probably was instituted because the company was burned by NSF check charge backs; so they wait for the check or payment to post and clear. In terms of complaints received by BBB regarding this they seem to willingly reverse late charges/negative credit impacts, despite these being spelled out in the terms/agreements somewhere.

Credit rebuilding takes time.

Another issue revolves around the application process time. This was brought up in the BBB complaint section. I think a lot of folks apply when they really need some money and don’t realize that the process takes time.

Two different reps indicated that the credit department mails in requests to the bureaus and waits for responses, and there is a big difference between “No credit history required” as stated on the page where the choice of cards is offered and the fact that while that is true, they most certainly do run your credit report, and if there is additional information required that may also add to the time. Federal laws come into play here which the banking industry is bound by. Obviously providing correct contact information is critical and since this updates credit bureau files with new tel# and addresses, some folks may be leery of this, fearing a barrage of new collection activity. Some get tired or impatient and wind up complaining to the BBB this is a “scam” but most if not all of the responses from this organization resulted in a cancellation of the application and an initiation of an electronic refund.

I would recommend you also thoroughly review the BBB complaint/resolution section for a complete grasp of the issues.

Nonetheless an A+ rating carries a lot of weight and a lot of issues are from folks not understanding the terms and conditions. They do seem to work favorably for the customer once aware of the situation.

Debt collection and financial setbacks happen.

As for my story, its one of ignorance basically. I was in a good job and with a hostile takeover in 2002 was laid off. Going from $50,000 a year to unemployment resulted in a mess, culminating in Chapter 7 in 2005. I got a new much lower paying job and had services established prior to filing Chapter 7 and all debts were discharged.

Well, my credit is trashed I thought. I didn’t check it. My spouse and I had joint accounts for water, insurance, power, utilities, the works. In 2011, I took a new job in another state. I left three months earlier to get established, find a place to rent, my spouse was to finish packing, close out the accounts and join me in the new state. I was able to get services there immediately as nothing in the old state was in delinquency. I set up house, opened a new bank account there and my spouse would close the old one. What I did not know was:

  • -My spouse over drafted the old state checking account at the credit union by $25.27 and did not tell me; although the CU rep called 5x and wrote 5X to my spouse. It would have been easy to fix in 2011. It went into charge off for $280 (rounded). Since I had opened a new account prior to this, there was no issue, but later, when relocating to IL in 2016 (after the marriage ended and after suffering a debilitating illness) my SSN was blocked due the charge off. I couldn’t open a bank account. I called the former state’s CU and spoke to the rep who had handled the case herself in 2011. Federal law, penalties and interest. No way to settle for less she said.

That’s when I pulled my credit report. Dish network was left unpaid, the old state power bill was left unpaid (it was a budget bill and totaled nearly $700) , the Banfield account was left unpaid, TWC Internet was left unpaid. These were all accounts where I was the primary SSN and account holder.

My responsibility for credit cleanup.

Fortunately, we still had a joint bank account and I made it clear, I would be paying these debts out of that account and would reimburse 40% to my former spouse because I had done the work in contacting and settling and was not told these accounts were left unpaid. I was responsible though as my SSN was listed as primary and I could have taken advantage of the free annual credit report in the intervening years.

Despite my current situation; it would have been overkill to file a new Chapter 7; opening another 10 year window, when the total debt owed was minor overall.

I researched your website among others, read form letters requiring “debt verification” on some sites and how debt validation works, but also learned it can sometimes do nothing but rearm the creditor for a lawsuit since they are now in possession of the facts needed to file one and indicate an active interest in credit repair making them less apt to negotiate.

I considered the reporting age off, and how these accounts would remain on file to almost the end of the decade and by that point, I would hopefully be better off, and will be needing a car, a place of my own and a job. Weighing those options, vs the debt amounts, for me the choice was clear. Clean up the negative. Otherwise if I was well within a year, I would likely find it difficult to find a job (if they pulled credit), find an apartment (if they pulled credit), find a car-even used- or even private party sale used and get a good insurance rate.

I also knew that simply cleaning up the negative credit was just a part of the problem. I had to establish a record of good credit. Despite a stellar payment history to all Missouri utilities and not one NSF in 4 years; these are not reported to the credit bureaus.

Even having settled, unsecured credit card companies wouldn’t touch me yet. I had:

  • “Too soon since negative item payoff”
  • “Serious delinquency record of collection action filed”
  • “Time since derogatory record or collection is too short” – all variations on a theme.

I researched. I could do Fingerhut Webbank, but they don’t report positive info. I then looked into “secure credit cards”. That led to a wide variety of selections, some with very poor records; (BBB), some with misleading terms, some who did not report positive info.

What I needed to do was find a secured card where I could afford a lump sum security deposit (as painful as that was) to where I could charge a small amount, co-pays, meds, a cell bill, etc. I also learned not to charge and pay right away as that does not establish a payment history. Rather, charge and pay the minimum amount due+ for several months, then pay it off, charge anew and repeat. Over time, this builds a positive history and as the negative info recedes and falls off; your score will improve. Don’t blow this chance though, don’t be late, or don’t fail to pay. You’ll be back to negative credit which will eventually morph into no credit-which is just as bad–and this time the secure credit card companies might just not give you that next chance.

Thanks Jason! That is a great contribution to the site. Hopefully you will subscribe to the comments and offer more of your feedback, and let people know how you progress on your credit rebuilding journey. If anyone has questions or concerns about using the First Progress unsecured credit card, or other accounts designed to improve your credit after collections, and other set backs, post in the comments below for feedback.

Filed Under: credit reports

Can Work At Home MLM and Network Marketing Provide Full Time Income?

June 15, 2015 by Michael Bovee Leave a Comment

I spend much of my time helping people figure out how they can get through a tough financial situation that often peaks with the inability to pay bills. This means I am most often speaking to people for the first time when they have debt emergencies and late stage debt collection issues. This is not a great time to bring up the topic of making more money, whether from a work at home opportunity like an MLM program, network marketing, a second part-time job, or other types of additional income, as a means to deal with debt. The time to talk about increasing your income to pay off debt is often earlier than people contact me, reach my website, or would be better suited for discussion when the debt emergency is resolved.

Often times, the answer to resolving not just debt, but accomplishing other financial goals (college tuition, buying a home, improving your retirement prospects) can be reduced to spending less than you earn, and increasing your income.

I want to share some perspective and experiences about increasing your income with a home based business like an MLM or network marketing program. For some back ground, I can attribute my start in the debt relief industry, at least from a professional and full time perspective, to my prior experience with MLM and network marketing. I also started CRN in my basement in 2004, and even now work from home more often than not, which became more normal for me after transitioning CRN into publishing efforts more than direct debt relief services.

Are work at home opportunities available and viable?

Back in the 90’s, work at home opportunities predominately consisted of MLM, Network Marketing, and some direct sales. With the internet, came increased connectivity and communications, the landscape for working at home full time, with all of the flexibilities and benefits that brings (for individuals and companies), the viability is now unquestioned. Telling a friend you have the ability to work from home now gets more of a “you are so lucky to be able to do that” response rather than the “that can’t be a good career path… is there something wrong with you” looks and questions.

home-based

Anyone trading hours in their car commuting to work, for a walk down the hallway to their home office, knows they have it good. If you miss the office environment, just call up a friend during rush hour traffic. They may appreciate the hands free distraction while trapped in their car, or they may just want to cut the conversation short (or you might want to), because they are not at their best right then.

I live in a cul-de-sac with 9 homes. One home is vacant and for sale. Of the 8 families here, 4 of us are self employed and have home offices. Two of the four of us can be considered to be working from home full time. My immediate neighbor is a computer programmer whose HQ is in California. He travels there once in a while, or to a customers job site as needed. I go to the CRN office very little, which is true of other experts in the network (one likes the office more than working from home, but still works at home on Wednesdays).

Having a home office where you work full time hours is more viable and popular than ever. Whether you work full time for a company, or are self employed with your home as your office, the opportunities to work at home are many.

The list of benefits that come with working from home is long and easy to make. Finding the job or opportunity that allows you this freedom and flexibility may not be, depending on your skill set and the job market you are in. This is perhaps why MLM and network marketing programs have the appeal that they do.

Multilevel Marketing (MLM) and other home based businesses.

My first job was a home based business (on a bicycle) by way of a paper route I inherited from my brother and sister at age 11.5. The papers I needed to deliver to my customers were dropped at my front door by 4 a.m. 7 days a week.

My next opportunity to work at home came with a network marketing program that was accented by 2 different MLM companies many years later.

The primary product in the networking program was education and was considered high ticket with a $1,2500.00 price point. The two MLM programs that accented the network marketing program were for leads and low cost long distance minutes (both a requirement for anyone dialing for dollars). Anyone I introduced to the marketing opportunities of my primary program would often enroll in my down line for leads and lower cost long distance.

I made money in all three programs. And not just cover your costs money. I earned full time – support a family of 4 by working at home – type of money.

The last time I worked for someone else was in the 90’s as a deck hand on the Wizard (yes, that boat from the show Deadliest Catch, Keith was my skipper then too).

How does a paperboy, gone jack of this and that trade, become a recognized debt relief expert?

MLM = Many Losing Money.

There is no shortage of people who would like to be their own boss and work from home. Many people possess an entrepreneurial spirit strong enough to drive them to succeed in their own business. But there are also that many more people (and then some) that like the idea of working from home, but are not suited to it, committed to success, or who worked/are working the wrong MLM or networking program.

The MLM drop out dynamic is not so different than the fact that most traditional businesses fail in the first 5 years. The drop out rate for home based businesses is accelerated though, and for good reasons.

It is because of the mismatch of people and programs that MLM is often jokingly referred to as an acronym for many-losing-money rather than multi-level-marketing.

All manner of things can conspire to work against a business owner, whether a traditional brick and mortar storefront, or someone working an MLM from their home office. It is this fact that contributed to me becoming a debt relief expert.

While I was focused building my customer base in what later came to be another network marketing high-ticket/4-tiered type of program, and still working the one MLM lead generating program (no MLM survived deregulation and business realities in the long distance telephone service market), many around me were building debt instead. And because people in my up-line and down-line knew I had started to geek out on debt and credit consumer protections, and strategies to negotiate and settle debts, my phone began to ring. But now the phone calls were more from people unable to pay their credit card bills due to marketing and business costs from whatever MLM program they were currently in, or had tried before.

I later helped build a network marketing and direct sales company that promoted debt relief. Some of the most successful home based marketers of that program were once it’s customers.

The low barrier to entry with MLM and Network Marketing.

People poke fun at MLM dropouts and their old school garage full of products (now replaced by technology and drop shipping). But the success traits of people working an MLM from home is likely not all that different than any other business in the traditional sense. What will often be stark differences are the costs, risks, and time associated with starting a traditional business vs an MLM program or networking opportunity.

You can start a home based MLM business in an afternoon, and with little comparative cost outlay. Opening a store front or traditional business will require much more planning, far more expense, and way more time. The risks with traditional businesses are often far greater than what home based networkers and entrepreneurs will experience.

This low barrier to entry will attract virtually anyone with an entrepreneurial spark, which is a ton of people. The ease and speed with which you can start a home based business is also likely some of why the MLM drop out rate is what it is. If you do not see or feel success in your business in 90 days, you can walk, and with little pain in making that decision. This is all the more likely if you align your efforts with a fad type of product that captured only a fleeting interest from you or your prospects. Once your enthusiasm for the product or service is gone, and if you never touch the potential in the compensation plan, you could find yourself burnt out from the idea of a home based business, or will have moved on to the next MLM… and possibly wash, rinse, repeat (many will float from program to program never stopping to fully focus on the three attributes I list below with absolute honesty).

The problems with MLM and networking programs are not just in the way the businesses are designed. I would suggest the problems are the same as they are in traditional businesses, which can often boil down to:

  • Not enough planning went into choosing the right business, product or service, location, partners, etc.
  • Under capitalized or unrealistic expectations about costs and profitability.
  • Not understanding customers needs and other fickleness.
  • Lack of support systems, or failure to tap into existing support infrastructure.
  • Not suited to be a business owner (not personable, cannot manage people, not all-in committed).

MLM and network marketing programs do work.

Just like any business can grow and thrive, an MLM or networking program can too. I know many successful marketers. Some of the things they bring to their home based business are the same things any business owner brings to theirs. Three key attributes of any successful MLM-ers that I know:

  1. Matched with a product or service that they identify with.
  2. Unwavering commitment, and not just to their own success, but to building success in others (team building).
  3. Able to manage their own time (there are no short cuts, and no get rich quick loop holes, just hard work).

My own experience, and that of all of the successful marketers I have ever known, suggest all three of those elements exist in force from the outset and carry through with longevity.

I will be covering the 3 above attributes for work at home success (and several others), in much more detail.

If you have questions about work at home opportunities, MLM programs, network marketing, or feedback about how to succeed as an entrepreneur, you are welcome to post in the comments below.

Filed Under: Work At Home

Next Page »

© Copyright 2021 Consumer Recovery Network 217 Cedar Street - Sandpoint, ID 83864 · All Rights Reserved - Site Terms  Privacy