3 Things You Should Look for in an Ideal Candidate for Debt Settlement
To be a success in the debt settlement industry, you first must acknowledge that debt settlement isn’t for everybody. Just because someone is behind on their bills doesn’t make them an ideal candidate. And, this can often result in a debt settlement company spending far too much money trying to cast a wide net with their marketing, when a more targeted approach can often be more effective and affordable.
So, what does the ideal target client look like? Here are three things that you should be looking for in your target audience when you’re in the debt settlement business.
#1: Bankruptcy Is Looming in Their Future
The ideal client for debt settlement is someone who finds themselves facing a financial crisis for the foreseeable future. They have gotten so deep into debt that there is no realistic way for them to battle out of it in their current financial state.
If they are seriously considering bankruptcy, then debt settlement can be marketed to them as a more beneficial alternative. The reason is because once an individual’s finances have them on the brink of bankruptcy, creditors are suddenly at risk of losing money. This makes them much more likely to negotiate with debt settlement companies.
Further, the client won’t have to worry about a bankruptcy sitting on their credit report for the next seven to ten years.
#2: They Have Suffered a Hardship
Many Americans suffer hardships every day, and when those events are severe, they can have dramatic impacts on their finances. From losing a job to getting divorced to accruing overwhelming medical bills, there is an endless number of potential life events that can put a serious strain on one’s finances.
In cases where the hardship has made it impossible for the individuals to pay their debts back in full, settling their debts with their creditors can be a better option for both parties.
#3: They Have More Than $10,000 in Debt
The ideal candidate should have at least $10k in debt, and the more accounts over $1,000 of debt, the better – because the larger the balances, the more generous the settlement terms will be.
Accounts under $1,000 are best managed outside of debt settlement because the savings the client will receive will be less than the credit benefits from paying off the debt in full on their own. They’ll also be able to keep the accounts open by doing so.
Finding Ideal Debt Settlement Candidates
If you target prospects dealing with one or more of these three factors in their lives, then you should see an increase in your clientele while saving money on your marketing at the same time. Remember, in order for debt settlement to be successful, it has to make sense for the client, the creditors, and your debt settlement firm.
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