How to Get Out of Debt With the Get Out of Debt Guy » profit charity

Debt Counselors of America – What I Learned

Steve Rhode — Wed, 29 Oct 2008 02:48:48 +0000

In 1994 I decided I would start a non-profit charity to help find good solutions for bad debt problems, all I really knew was that I wanted to help people.

Almost every organization at the time was named something with credit counseling in it. I figured that I did not want to counsel people about credit, but about debt, so Debt Counselors of America seemed like a much more logical name. And that’s how Debt Counselors of America was born.

I learned a lot of things as Debt Counselors of America grew. Some of them were good lessons, some, not so good. I thought I’d share those insights here with you.

Lessons Learned by the Founder of Debt Counselors of America

It is hard to help people who don’t always really want help.
Running a non-profit company is a very difficult balance between generating money to continue the mission and doing the right thing.
All I wanted to do was help people but it takes a lot of work just to get to that point.
I learned that I really don’t enjoy being the leader and the manager. I’d rather be one or the other.
It is damn easy to wander towards the dark side. The dark side pays better.
I learned a lot about other non-profit credit counseling groups and discovered that there are a lot of wolves in sheep’s clothing out there.
As long as creditors control the funding, they control the credit counseling agencies.
Very few people really fight for consumers. Even state consumer affair people have their own agenda to clear complaints rather than really investigate and intervene.
Even through the very unhappy times, I still care deeply about people and just want to be of assistance.
I learned that there are very few good solutions to really help people with money troubles.
I learned to respect bankruptcy more as a good solution and not one to fear as much.
I learned from watching clients that often it is our thoughts and emotions that drive our actions rather than logic or commonsense.
I learned to develop solutions by first identifying the goal that needs to be achieved and then working backwards to plan the way to do that.
Unfortunately I discovered that some credit counseling groups are deceptive, corrupted and do not operate in the best interest of the consumer.
I can’t work harder for my clients than they want to work for themselves or I burn out.
I learned that credit counseling is more of an industry than a peaceful mission. It is competitive and not a collaborative group that always works for the best interest of the consumer.
I learned that the best reward in life is being able to be part of making a positive change in others and altering thousands of lives to be able to move on and live a better life.
I learned the power of hugs.
I realized that I would be honored to spend the rest of my life being of service to others if I could find a way to do that.
I learned that being the boss is not always fun.
I discovered that being responsible for the income and success of a company that employees people is a stressful and massive responsibility.
I learned that some regulators are stupid and don’t care.
I learned that there is no substitution for hard work and dedication.
I learned that if you are passionate about what you do, it makes life more enjoyable.
I discovered the secrets to getting out of debt and how both magically simple and intensely complex they are at the exact same time.
I learned how much I could care about my employees as individuals and how happy I was to watch them succeed, even when they moved on to other jobs.
I learned to appreciate every client as a friend and was thankful for the trust they placed in the group I created, Debt Counselors of America.

So if you have a money, credit or debt problem that you would help with, ask me for free help and I’ll be happy to assist you with answers and advice. I’ve always been and hopefully will always be here to help you and others.

Steve

Five Inside Truths About Debt Management Plans (DMP) You Need to Know

Steve Rhode — Sun, 02 Mar 2008 09:51:10 +0000

From How to Get Out of Debt

People are often so confused or uninformed about debt management plans in the US that I wanted to share some truths with you. Here are the five biggest misconceptions people have about debt management plans, in no particular order.

Debt Management Plans Are Not Designed for You to Get Out of Debt

Since the DMP terms are really dictated by the creditors a debt management plan is not really designed to get you out of debt.

A true get out of debt plan would be created using your circumstances as the starting point and then crafting a plan to allow you to get out of debt from your starting point.

The DMPs of today, with creditor dictated terms, doesn’t work like that. It tries to get you out of debt using what the creditor wants as the starting point.
Debt Management Plans From a Not-Profit Credit Counseling Group Are Not Better

A debt management plan from a nonprofit, non-profit or not-for-profit charity is not any better or worse than from a commercial or for-profit company. Being a nonprofit credit counseling group does not change the basic security measures necessary for a safe debt management plan.

A nonprofit charity like a consumer credit counseling office is not much different than a commercial company. Except for the following major issues.

The nonprofit credit counseling company gets paid for collecting money from you on behalf of your creditors and does not want to “rock that boat” and fight back against creditors if that will reduce their favor or funding.

The nonprofit credit counseling company “pretends” for the most part to be a charity when in fact they generate the majority of their income as debt collectors.
Most People Don’t Get Out of Debt Using a Debt Management Plan

The majority of people that participate in debt management plans do not make it to completion and thus do not get out of debt using a debt management plan. This is not really a fault of the DMP provider but that a debt management plan takes years to complete and the debtors circumstances can change along the way.

The majority of Chapter 13 bankruptcy plans fail to complete as well for the exact same reasons. The failure of debt management programs is due to life and time, primarily.
Bankruptcy is Often Better Than a Debt Management Plan

Strictly from a time point of view, bankruptcy can be a better option. When you file bankruptcy the credit report recovery clock starts ticking immediately. In a debt management plan the history of you plan and payments can remain for longer since it can be reported from the date of your last payment.

Bankruptcy also allows many to get a fresh start and a second chance to start over. Recovering from a bankruptcy is hard but not impossible and the breathing room people get after bankruptcy is often just what they need to move forward, faster.
Paying For Help to Get Out of Debt is Good

The charitable debt management industry fails to inform you that they are paid by the creditors to collect money from you. There is no way around the fact that this can cloud their assistance because they are trying to please their pay masters and the clients at the same time. Which do you think gets the higher priority?

When you pay for debt help the company you hire is motivated to work for you. You are the client and there is no confusion about who the allegiance is owed to.

How to Get Out of Debt With the Get Out of Debt Guy » profit charity

Debt Counselors of America – What I Learned

Other Related Articles to Read

Five Inside Truths About Debt Management Plans (DMP) You Need to Know

Debt Management Plans Are Not Designed for You to Get Out of Debt

Debt Management Plans From a Not-Profit Credit Counseling Group Are Not Better

Most People Don’t Get Out of Debt Using a Debt Management Plan

Bankruptcy is Often Better Than a Debt Management Plan

Paying For Help to Get Out of Debt is Good

Other Related Articles to Read