Sales Lead Generation Guide » Debt Leads

There Is Still Life Left In Debt Consolidation Leads

Jes — Mon, 09 Nov 2009 15:42:54 +0000

A few years ago, there was absolutely no way you could get a better return on your investment than by buying a debt consolidation lead. These mortgage leads were worth their weight in gold. These were people with sizable amounts of consumer debt, and they typically had higher interest rates on their mortgage. And, just to sweeten the pot, it wasn’t very hard to get a debt consolidation loan lead that also had great credit.

But, the real reason that these leads were so strong was that there were so many different programs available to send these borrowers through. If they did not qualify for Conventional financing, you could look to the FHA program. If they did not qualify for the FHA program, there were literally hundreds of different Non-Conforming lenders out there. Each one had their own unique niche, and if you looked hard enough, it was very rare that you ever had to turn a client down.

Now, granted, the interest rates on these sub-prime loans were not great, and to make matters worse, they were, for the most part, two-year adjustable rate mortgages. But, the good thing about debt consolidation loans was that when you offered a refinance at 9%, it was still considerably lower than the interest rates on their credit cards, and as a result, you could save your borrowers considerable amounts of money on a monthly basis.

Well, as the lending market has tightened up, it has become very difficult to obtain a debt consolidation refinance. Consolidation debt lead mortgage loans are simply not able to be handled the same way they were in the past. It just does not happen anymore that you can do a cash-out refinance and consolidate all of your borrowers’ credit cards. Home prices are falling and LTVs have been cut. So, most brokers have decided that debt consolidation leads no play a role in a good marketing strategy.

But, the important thing to remember here is that these leads still have a lot of great use. It is certainly true that these borrowers are looking to consolidate all of their debt. And, it’s also true that you probably won’t be able to do that. But, the real underlying need of these borrowers is simply to lower their total monthly payment. With the rates as low as they currently are, this is not very hard to do, even without consolidating any debt.

When used in this manner, you’ll see that most debt consolidation leads will actually just become straight refinance leads. When you are able to save them 200 dollars on their monthly housing payment, they will be just as excited as if you had been able to pay off all of their credit cards.

Using Debt Settlement Leads

Jes — Fri, 06 Nov 2009 20:40:05 +0000

If you are a Consumer Credit Counseling Company, There Is no reason for you to not use debt settlement leads. Consumer Credit Counseling is a tough business. There are many areas of competition out there for a good consumer credit counseling company. There are mortgage companies offering debt consolidation loans, personal loans, debt management firms, and of course, bankruptcy. You know that good CCC is a better benefit to a client than all of the other options, but in order to make money in this business, you need to make prospective clients know this too.

A customer who is trying to get out of debt or looking for any sort of debt relief will typically save consumer credit counseling for their last option before filing bankruptcy, especially if they are homeowners. The progression is usually along these lines: they will try to get a personal loan, and then a mortgage debt consolidation loan, and then try for moderation, and finally then turn to CCC.

However, there are some things working in your favor. The downfall of the economy is a blessing to you in more ways than just the increase of potential people looking for debt help. Most importantly, it has helped to weed out your competition. Specifically, the number of companies offering personal loans has greatly dropped, and the ones left have tightened their lending guidelines immensely. The exact same thing has happened in the world of mortgage finance as well, except that the fallout has been even worse.

The Kind of Debt Leads You Should Buy

Jes — Thu, 05 Nov 2009 20:04:42 +0000

Let’s face it. We are in a rough economy. Times are tough all over. Unemployment is at the highest level it’s been at in decades. Home prices are falling. Credit card companies are cutting their limits and raising their interest rates. Financing options have disappeared. For the average consumer, it’s getting to a breaking point.

People are in higher need than ever before to do something, anything at all, to get help managing their debt. If you are in any sort of financial field focusing on debt management, there is a debt lead out there for you.

The thing is, with debt lead generation, it is almost impossible to distinguish between types of leads. If you are actively hunting for debt consolidation leads, you are going to be contacted by just as many debt management leads. If you are hunting a debt elimination lead, you are just as likely to end up getting a debt consolidation lead. The reason for this is a simple one. For the most part, these are all the same leads!

People all over the country are in the worst straits they have ever been in. It’s not like it once was. It used to be that debt settlement leads were just that. Someone was too far-gone, riddled with collections, and unable to obtain financing through other means. They would get on the internet and search for ways to settle on the debt.

The difference now is that people are not just sitting down and trying to obtain a pre thought out goal. They are reaching out to the internet and grasping at any straw that they can. It used to be that if you tried to sell debt consolidation to someone who was only after debt settlement you would have next to no chance of converting them into clients. That just isn’t the case anymore. If a client is trying to negotiate down the payoffs on collection accounts, but instead you offer a chance to actually consolidate all of their debt, they will be overjoyed. This is actually, what they were looking for: any help they can get.

So, now’s the time to do two things. First off, you need to look over all the debt leads that you’ve purchased over the last few years and revisit them. You’ll find that a lot of the people that weren’t interested before will be completely on board now. And, finally, you should be purchasing more debt leads than you ever have before, because there has never been a better time to capitalize on them than now.