The debt settlement industry dates back to around 1998, when pioneers of the industry, such as the owner of Nationwide Debt Reduction, Inc. (NDR), realized the need for debt help for themselves, their businesses or family members. In NDR’s case, our owner was personally in debt himself and did not know where to turn to get help for getting out of debt.
He began contacting each of his creditors to negotiate and settle his debt, similar to what the IRS does with its offer and compromise program. At first he did not think these companies would help him, however though guidance and persistence, he was successful in getting out of debt.
Family members heard what he had done and began asking if he could help them become debt free as well. The rest, they say, is history. Things began to change about 10 years later when the credit card companies decided they were not going to “so nice” anymore and stopped working with individuals in debt.
When this happened, there was a proliferation of debt settlement companies throughout the United States most of whom were not “legitimate” companies. What many of these companies began to do is aggressively advertise their companies with slogans such as, “We’ll tell you the secrets the credit card companies do not want you to know.” (By the way, there are no secrets.)
Second, the debt settlement industry began to charge people a percentage of their debt (usually 15%) as an “upfront fee to get you started. For example, if you had $35,000 in debt, they would charge you $5,250 ($35,000 x 15%) BEFORE working on the negotiation and settlement of your debt. Without knowing what they were doing, people began to sign up in droves as this is the “easiest” way to get out of debt.
The legitimate companies fought with these “pretenders” finally getting Congress to pass a law in October of 2010 which is essence stated not only could you not charge these upfront fees any longer, they went a step further and said a company cannot charge any fees until a settlement has taken place to begin with. Almost overnight, these illegitimate companies were no longer in business. However, they did leave a scar on the industry.
Unfortunately, hundreds of thousands of people have found themselves in what we have coined, “the debt trap” in what seems to be no predictable way out. The process of having to go through a debt settlement company, something they know very little about, can seem daunting to say the least. On the other hand, there are hundreds of thousands of folks who have “the call,” to see if a debt settlement program would work for them.
That is one of primary goals as Nationwide. We feel that if people simply “made the call” and educated themselves about how a debt settlement process works, the better decisions they can make about their own particular situation. That way, those folks who could our services can rest assured that the options available to them will lead them into manageable solutions.
In addition, with the proliferation of the Internet, Blogs, and Chat Rooms, more and more people are becoming familiar with how debt settlement programs work and what to look for. We suggest that you if you found yourself on our website and enjoy being educated about all of this, you are well ahead of the pack!
Two other distinguishing characteristics of our company are 1.) We are the largest Christian debt settlement company in the United States today. 2.) Our business model is incentive-based, simply meaning that the more our negotiators can save you the better it is for them as well.
If you have not done so already we highly suggest you contact one of our professional debt consultants today utilizing our toll free number at 800-890-6658. Spend as much time as possible with your consultant and learn how a debt settlement program may be an answer for you and your debt situation.