Debt Consolidation

Starting A Consumer Credit Counseling Company

If you are considering starting a consumer credit counseling company, you need to follow a set procedure. There are several rules and regulations on both state and federal level that you must fulfill thoroughly. Since the time credit cards have been introduced in the market, there has been demand for credit counselors. Credit card debt is one of the most common reasons for the majority of people that go bankrupt. These types of debts grow very fast because of the high rate of interest that is charged on it. Besides that, since credit card companies allow their customers to pay just a certain minimum amount of payment every month and avoid the actual debt, it becomes another reason for fast accumulation of credit card debt. Sometimes these debts become so overwhelming that debtors find themselves quite helpless, and this is in situations like these when they turn to credit counselors. Following are some of the necessary steps that you need to follow in order to start a business in this field.

Strengthen Your Skills

A credit counselor must posses certain necessary skills in order to be successful. Therefore, when it comes to starting a consumer credit counseling company, the first thing you have to do is to strengthen those necessary skills. For example, in order to become a certified crisis counselor, you should consider taking classes in psychology, as this way, you will be able to deal with people in financial crisis more efficiently. You should also consider taking some higher education courses in financial services. If you lack a strong mathematics background, consider taking classes in financial mathematics. Do everything possible to become a certified financial planner in your state.

Establish An Office

You will also need an office, where you can invite your clients to discuss their financial issues. You do not necessarily need a very large office, but it should be spacious enough so that the people who come to meet you should not feel uncomfortable. In order to promote your business, you will have to give free seminars on certain occasions so that you can attract more clients. Therefore, you are also advised to be very careful in your selection of the facility where you are going to establish your office. The facility must allow you access to a conference room, where you can organize those seminars.

Business Cards And Brochures

When you are starting a consumer credit counseling company, you also need to do a lot of marketing for your business. Unless people know that you have stared offering credit counseling services with great features, they are not going to come to you on their own. You need to inform your target audience that you have started a company that offers services that might interest them. Give them reasons why they should hire you, not other counselors. Print business cards and make them available at places where your target audience can easily access them. You should also consider distributing brochures that should inform people about your business, such as the basic principals you follow, why you are a better choice, the kind of services you offer, the kind of qualifications you have, and other such things. You can distribute these brochures not only to people who you are debtors, but also to various lending institutions. The brochure should explain to the lending institutions how you can help them in recovery of debts in a timely manner.

Do Some Aggressive Advertising

While you are starting a consumer credit counseling company, you need to be very aggressive with your advertising strategies because the market is a highly competitive one. It is not an easy task for a new credit counseling agency to win good customers. First of all, you must have a good website. In this age of Internet, you cannot expect success for your business without an impressive online presence. Put up fliers at several places that are easily accessible by your target customers. You can also consider publishing small advertisements in local newspapers. Besides that, effective marketing strategies also require you to participate in trade shows and financial fairs that are open to the public. Networking at local civic and social events is also very important in this regard.

Prepare A Schedule Of Charges

People often want to work with a legitimate and affordable consumer credit counseling company. Therefore, you need to be very honest in your business approach. Try to keep everything quite transparent, especially when it is about the fees you charge for your services. Develop a schedule of charges, where you must explain the amount of fee for specific service and the payment options you allow. It is always a good strategy to offer the first consultation free of cost. This way, you will be able to attract more customers.

It takes time to build up a business. More people will start coming to you as your credibility increases. Therefore, you also need to practice a lot of patience because you are not going to enjoy the taste of success within just a few months after starting a consumer credit counseling company.


Custom Search

Tags: ,
Posted in Credit Counseling, Debt Consolidation | 2 Comments »

2 Responses to “Starting A Consumer Credit Counseling Company”

  1. Bill says:

    Credit Counseling has a lot of possibilities for a bright career but this job of credit counselors needs some very unique skills. Credit Cards have become the necessity for every body, no one can think about their life without plastic money. Credit Card debt comes with a very rate of interest, due to this high interest. It becomes impossible to pay off the debts in time. Credit Counselors must know his/her strength and try to motivate their skills. Financial math background can help you to understand the financial statistics easily. An office will also be required to meet your clients and arranged for meetings etc. If you are new in this field then you have to promote your business by giving free lectures and by giving free seminars on different topics, so you have to be very careful about the promotion of your business. Marketing is also a very essential tool for your business strategies, you have to do a good and impressive marketing of your company and about your work, you can even target any lending companies, which provide debts to the customers you can deal with them for the recovery purpose.

  2. john says:

    Credit Counseling Companies are in demand for todays. Every person who uses plastic money like Credit Cards must face a position where he/ she find himself in a position of being caught in a trap of Credit Card Debts. Credit Card Companies provide us a lot of facilities like the option of doing minimum payment only and if any body use such facilities the debts start increasing very fast due to very high rate of interest. Credit Counselors can provide you some help in this situation. If you are planning to start a Credit Counseling Company, you have to be very careful and follow some easy steps to establish your company. First of all your negotiation skills must be perfect and you should have a strong ability to understand the psychology of others and can convince others accordingly. An Office will also be required to start your business. You have to call your clients for meeting and to discuss their financial issues. For this, you will need an Office. It is not necessary that it must be a bigger one; a small office will also work. Advertising will also play a key factor.

Leave a Reply

You must be logged in to post a comment.