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Why You Should Start A Credit Repair Business

Apr 23, 2008
Let me count the reasons. Four million. That's the number of American homes in foreclosure. One trillion. That's the amount of credit card debt. Two million. That's the number of personal bankruptcies each year. We are a country in need of help; the kind of help that a credit repair business can provide to those in trouble.

Only about half of Americans are able to pay off the balance on their credit cards every month. Yet most borrowers who are struggling to keep up with their mortgage and credit card payments don't know that help is available. A recent report from Freddy Mac, the government-sponsored business that acquires mortgages, revealed that 57% of families with credit problems didn't know how to solve them. They didn't know that lenders would work with them to find a solution. It's a great opportunity for you to become the go-between, the negotiator between the borrowers and the lenders.

If you have had experience helping a friend or family member fix their bad credit, you are the ideal candidate for becoming a credit restoration specialist. It always helps to "go with what you know." Maybe you worked on raising your own credit score, or negotiated with a lender to reduce interest rates. These are all great references for your credit repair business.

You have to have the right personality to succeed in credit repair. First, you have to be patient while you dispassionately listen to your client's problems . Gather the facts, while you offer your sympathy. You have to be a forceful negotiator in order to deal with debt collection companies and impatient lenders. Your ability to concisely state your client's case, while proposing reasonable alternatives will be crucial.

Two other traits will be also beneficial to your debt counseling career. Your ability to organize and document the volumes of letters and papers that each client's case will generate is crucial. And it's important that you can maintain the confidentiality of the information you collect - this is NOT a job for a gossip!

Before you quit your current job and launch your new career, it would be an excellent idea to prepare a business plan. This will help you understand the potential market for your business, and to see if it will be profitable in your geographic area. List the expenses you will face (like a new computer, office supplies, a new phone line, and advertising). Then compare that to the anticipated income. The business plan should cover at least the first two years of your business (that's the period during which most new small businesses fail).

Further develop your skills by researching credit repair practices and by purchasing manuals that provide proven tips and techniques for solving credit problems. You might even consider some adult education courses to work on your computer literacy, communication, and math skills - they will all come into play in your new career.

If you do your due diligence by becoming educated on the topic, and preparing a detailed business plan, you will be able to definitively answer the question "Should I start a credit repair business?" And I think the answer will be "yes!"
About the Author
Learn all the credit repair knowledge you need to start a successful credit repair business by visiting The Official Credit Secrets Bible Website
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