Debt settlement is the process involving a lump sum one-time payment that is offered in exchange for actually forgiving the rest of the debt balance. The debt settlement process could be fetching immense benefits provided it is done by qualified financial experts in the field. If you wish to make a solid career in this field, you must understand what the job as a debt negotiator actually entails.
Let us understand the current debt scenario in the United States that says “The Consumer Financial Protection Bureau recently reported that the average consumer’s credit card balance has increased by 9% over just the last two years. Applications for new credit cards have increased a whopping 50% since 2010. The Federal Reserve reports that American consumer borrowing now stands at $ 3.8 trillion a number that exceeds the GDP of all but three countries on Earth.”
The statistics clearly show that Americans are grappling with heavy debts and obviously, they would be compelled to look for effective debt management and debt relief services. You may consider becoming a qualified Debt Negotiation Specialist to help out consumers who have no knowledge of the debt settlement implications and ways to go about it. In this context, we know that debt relief services including debt settlement companies are recording phenomenal growth and therefore, they are coming up with fantastic opportunities for young and qualified professionals to join this field.
Debt settlement companies would be providing professional assistance to consumers who are struggling with ever-mounting debts and looking for effective debt relief options. A typical debt settlement company would be requiring a number of employees with different skill sets. The company would be having managerial and administrative staff, audit & accounting personnel, people who are conversant with collection and debt restructuring process and also, debt negotiators who would be interacting with the consumers grappling with debts and try to find the right solution by negotiating with collection companies and creditors on behalf of their clients for a good deal. The principal professional that customers of a debt settlement company would be interacting actively with is supposed to
be a qualified debt negotiation specialist. Customers must go through debt settlement reviews online before opting for a debt settlement.
Debt Negotiation Specialist: Role & Responsibilities
Debt settlement companies dealing with people who are having debt servicing issues require employing staff for interacting with customers in order to know and understand clearly what their individual problems and concerns are, help them in finding relevant documents and suggest effective ways to manage their debt issues. A debt negotiation specialist requires meeting and interacting actively with various financial institutions and credit card companies from which the customers had taken their loans.
These professionals must possess exceptional communication skills so that they could convince the customer’s creditors to agree to a reduced payback amount in comparison to the full debt amount pending. They should try and convince these authorities to effectively reduce the interest rate, the penalties along with the principal amounts so that it becomes far more affordable for the debtors to settle the debts.
Debt negotiators are required to know, understand, and evaluate the financial status and problems of the borrowers and help them in chalking out an appropriate budget as per their unique requirements and financial condition. They would be meticulously reviewing the customer’s credit history and recommending effective steps to boost the credit score, repair and restore the credit file.
Debt negotiation specialists are supposed to hold a position of intense trust and reliability, as far as, the customers are concerned. They would be contacting the debt collection agencies and the creditors of their clients, validating the balances and then go on to effectively negotiating an affordable, profitable, and a favorable deal on behalf of their clients. They may need to convince the creditors to agree to reduce the interest rate, extend the debt repayment time, waive the late payment penalties and effectively reduce the amount that had to be paid back and that would include the principal amount and the interests. These professionals would be guiding you every step of the debt settlement process and telling you what is best for you and suggest how to go about it. It is their responsibility to inform the clients regarding all applicable laws, regulations and existing rules so that they avoid infringing on others’ rights inadvertently and unnecessarily
compromise their situation.
Debt Negotiation Specialist: The Skill Set
If you wish to shine in your career as a debt negotiation specialist, you need to possess exceptional written, as well as, oral communication skills because your job entails making top-notch presentations. You must be logical and very clear in your thought processes. You should be effectively processing a huge amount of details in a very short time span.
You must be confident and self-assured and must instill a spirit of confidence in your clients so that they are convinced that they have made the right choice and have come to the best professional who would be coming up with perfect solutions to their debt issues. You must be compassionate and empathetic toward your clients. You must understand their plight and try to help them with utmost sincerity and serious intent. You must genuinely want to help people in distress and that surely is a valuable asset if you wish to climb up the ladder to senior positions in this profession.
You must have a sound understanding and in-depth knowledge of finance and debt-related issues. Among the desired technical skills that would be essential for achieving success and a superfast career rise, would include intuitive understanding and capacity to seamlessly interpret credit reports, create custom-tailored financial budgets and chalk out financial plans keeping in mind the existing regulatory environment and applicable laws. In order to be successful in your career, you need to be bubbling with energy and enthusiasm. You
must be passionate about your job and must believe in excellence. You must possess extremely high levels of ethics and integrity.
Compensation and Benefits
Individuals with a background of a four-year degree course in finance or related streams and some certifications associated with debt settlement could expect a very good starting salary in a renowned company. Along with a substantial base salary, debt negotiators are often entitled to lucrative commissions, transit, and 401k, medical, dental & vision plan benefits.
Certification & Training
Certification requirements would be varying from state to state and from one company to another. Some states would be demanding a special license to become a qualified debt negotiation specialist or a debt negotiator. Some reputed companies would be providing specialized training to the new recruits when they join as debt negotiators.
Jobs in Credit Card Companies & Banks
The credit card companies and even banks provide loans to borrowers and if they fail to repay the money, these credit card companies and banks would need to consult professionally qualified debt negotiators. In such a case, the banks could be paying a commission to these professionals for recovering the money from the consumers and successfully settling a single or one-time payment.
If you are really compassionate and wish to help people in financial distress, you may consider becoming a debt negotiation specialist. If you are adequately skilled in negotiating with creditors and settling debts for your clients, there are many companies willing to employ your services. Rest assured you have a bright career ahead.