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Couple Did It Themselves. Settles Half Million Dollars of Debt For $154K.

The following guest post was contributed by Michael Bovee of Consumer Recovery Network.

If you would like to contribute a guest post, click here.

I was talking to Michael Bovee the other day about the DIY debt settlement approach and he shared a recent case study with me of a client of his that had just settled their last debt using the Consumer Recovery Network DIY approach where the consumer settled their own debt.

I asked Michael to share the case study with all of us. Here is is.

Couple Settles Half Million Dollars of Debt For $154K

The account completion summary below is an accurate representation of the results this couple experienced while working with my company. I am illustrating it here due to some of the recent skepticism I have read and heard regarding the efficacy of DIY debt settlement.

The file contained a combination of business and personal accounts. The member enrolled 3/3/10 and finished their final settlement last week 4/4/11.

They ran a construction related business that deteriorated due to the economy and the housing market. They had a benefactor who assisted in funding offers as well as their selling some personal stuff.

This couple could have, and in fact were encouraged by family and friends, to walk away from it all by filing bankruptcy. They could have, but were determined not to.

Couple Did It Themselves. Settles Half Million Dollars of Debt For $154K.

This Consumer Recovery Network member used the DIY approach we teach on all but one account.

Total fees for membership and the one account their specialist settled for them on a performance fee equaled $5045.00.

Imagine what they would have paid the typical company in my industry.

The total debts equaled $485,399.00 at the time they enrolled in March of 2010. The typical fee charged by industry at that time was 15% of enrolled debt, which suggest the fee would have been about $73,000. A company charging 25% of the savings when calculated from the beginning balances would have charged about $83,000 in fees. Had CRN settled all of the accounts on their behalf at our 15% of savings success fee we could have earned about $50,000.

Rather than maximize the work we do at Consumer Recovery Network with a profit motive, we operate from a perspective of what will be of maximum benefit to people.

In our view, people should be given every detail and opportunity needed to successfully work directly with their creditors so that fees for a direct debt settlement service can be avoided. Available funds should be dispersed to creditors, not to fees, whenever possible. We are here as a back up to jump in when needed and asked to. We are happy to do the negotiations and settlements for any reason, or no reason at all. We just assume by educating our members thoroughly upfront and on an ongoing basis that they will capitalize on their ability to achieve the same results we would seek on their behalf.

Couple Did It Themselves. Settles Half Million Dollars of Debt For $154K. by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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