Last week I was communicating with a client regarding debt relief and how our program works. I explained in detail that getting out of debt is more like a marathon, not a sprint, so the path to debt freedom doesn’t happen overnight. The client responded that he is, and was previously, a very loyal customer to his creditors so getting out of debt in fact will be pretty quick.
Unfortunately, I had to burst his bubble, but so many people in debt think that loyalty alone will save them.
So here is the hard truth…
Creditors review a number of factors during debt negotiations before they consider resolving your debt for less than the balance. Some of those factors may include how long you’ve been a customer to the creditor but payment history, debt amount and the type of card features you have may be as equally important as your loyalty.
Remember, especially in this instance, that loyalty is a perception and it may have little to do with your ability to get out of debt sooner by way of debt settlement. Credit card companies ALWAYS operate as a business so it’s really about what’s in THEIR best financial interest, not YOURS!
In the end, the client understood that customer loyalty alone is not enough to get out of debt, and debt freedom is a journey. I reminded the client that it helps to have a dedicated staff who’s willing to run the marathon with him, regardless of the road ahead.