What an Entrepreneur Needs to Know about a Debt Management Service
Contributed by Lisa Marie
Attention all entrepreneurs! Are you considering the use of a debt management service?
You are starting your own business and thinking about using a debt management service to consolidate your bills before moving ahead. Well my friend, you might want to think again!
I have personally done just that...I thought by consolidating my bills before I got into a heap load of trouble, I would be more eligible for a small business loan. Well, I couldn't have been more wrong.
It seems that when you use a debt management service, the representatives that you speak to on the phone don't tell you everything that you need to know. You speak to them with the hopes of improving your financial situation, thus leaving you with more money at the end of the month for your new business. What they fail to tell you is that by doing this, you can actually damage your credit- far worse than it is right now.
A debt management service is usually a non-profit organization.
But one must remember that just because they are non-profit, it doesn't mean that they don't make any money. It means that they take all of the money that they do make and put it right back into the company. But the people who have made this service available to you must make money to keep their business thriving. They do make a weekly paycheck, probably more than most of us do. There are many non profit organizations and companies in which the higher ranks make in excess of $100,000 annually.
I'm not saying that this is the case with a debt management company, I'm just saying that it's food for thought.
