Debt Settlement Leads from Direct Mail Marketing
The debt relief lead volumes continues to soar for debt negotiation companies offering with debt settlement, debt consolidation, credit repair and bankruptcy as direct mail marketing has helped these companies target struggling consumers seeking debt-free solutions. As a result of increased unemployment and the unstable economy, card companies are going carte blanche on consumers by hiking up interest rates and fees to exorbitant levels while slashing credit lines. The average household had more than $8,700 in credit card debt last year. And, it’s nearly impossible to make headway on credit card balances even if consumers make more than the minimum payment.
These harsh times for consumers create a huge window of direct mail opportunity for debt settlement companies. Now is the time for targeting consumers who have too much credit card debt. Most people don’t qualify for traditional debt consolidation loans or second mortgages anymore. Let them know that debt negotiations are viable ways to get the debt relief they need. With direct mail, you can personalize the approach to fit the consumers’ needs. Tell them how consumer credit counseling is misleading and consumer pay back with debt settlement allowing them to get out of debt sooner.
Charge-offs, credit card accounts that banks have simply given up on collecting, have been reaching an all-time high amid rising unemployment and continued economic problems. As a result, big banks have formed an unusual alliance with consumer advocates to urge the government to allow huge portions of credit card debt to be forgiven through a pilot program that could help as many as 50,000 indebted consumers. Click to Call Debt Settlement Leads, that connect website visitors with live debt relief agents by phone has been seeing phenomenal conversion rates. Debt Settlement Companies, like Nationwide have reported a significant increase in business since implemented direct mail and click to call advertising campaigns.
The new proposal pitched to federal regulators by the Financial Services Roundtable, which represents more than 100 big banks, other financial companies and the Consumer Federation of America, would allow lenders to reduce credit card debt by as much as 40%. This is great news for debt settlement companies and for consumers struggling with debt, especially if this program becomes permanent.
The Debt Forgiveness Act of 2007 and its amendment, the Emergency Economic Stabilization Act of 2008, provides tax relief, but only to debtors with debts secured by a primary residence that were forgiven. It doesn’t cover credit card debt. If a credit card company forgives a debt, by law it must send the consumer a 1099-C “cancellation of debt” tax notice. The consumer must then report this as income on their tax returns. But, that’s still better than bankruptcy.
Let people know that even with the 1099-C, they’ll end up paying less than what they’d pay in bankruptcy attorney fees. And some consumers may be able to exempt part or even all of the forgiven debt, especially if a reduction or loss of income makes them insolvent enough to be able to write off the tax debt.
With banks now realizing that they can lose less by forgiving part of the debt than seeing the consumer walk away entirely, now is the perfect time for debt settlement companies to ramp up their direct mail marketing efforts.
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