Although, there have been several laws passed about the use of telemarketing to make unsolicited phone calls, this is still one of the favorite sales options for quite a few different industries. Unfortunately, credit card debt relief is one of the industries that has chosen telemarketing as a great marketing tactic. So, you may get calls from pushy salesman contracted to sell something that they really don’t know about. All they know is that in their mind, their product is a perfect fit for everyone and it is their duty to help consumers they call. Unfortunately, there are usually a few missed steps here…
The #1 Problem With Credit Card Debt Relief Telemarketers – They Have No Idea What They Are Selling
During the training process for all debt relief salesman, they will be told about how great the product may be. For instance, debt settlement can save consumers a huge percentage of their balance on payoff. When it comes to who should consider the option, the answer is anyone with $10,000.00 in credit card debt or more. However, what is often left out of these training sessions is the effect it will have on a consumer’s credit score. The truth is, although, these salesman are trained to believe otherwise, there is no one size fits all credit card debt solution.
The #2 Problem With Debt Relief Telemarketers – They Are Generally Paid Commission
Even if the slick talking salesman is well versed in the option that he is selling, he is probably going to be paid commission only or, a small salary plus commission. With this payment plan in place, the salesman on the other end of the line feels like they have to sell everyone they talk to in order to make a decent paycheck. Therefore, the salesman may consider the fact that you are not a good candidate for what he is selling and enroll you into his services anyway to get a better paycheck!
The #3 Problem With Debt Relief Telemarketers – Sales Quota Demands
If the salesman that calls you is not paid a salary, he is most likely being held to a weekly or monthly sales quota. If the salesman doesn’t meet the quota he will lose his job. Although, if used reasonably, I completely condone this form of management. However, unreasonable expectations cause even the most educated debt relief salesman to make mistakes due to feeling rushed to make the sale. Making a good credit card debt relief decision takes at least a couple of hours. I general tell my prospects not to make the decision until they have slept on it. This way, common sense has time to kick in. However, in a high pressure sales environment, a high percentage of salesman are expected to have phone calls that last no more than 20 or 30 minutes. Longer than that and, they won’t have time to reach minimum quotas.
Should You Ever Purchase A Debt Relief Service Over The Phone?
I didn’t write this article to tell you that all debt relief companies that use telemarketing as a way to market their products are horrible companies and you shouldn’t do business with them. I wrote this article so that you understand the dangers in making a 20 minute credit card debt decision as the result of a pushy salesman. The only time you should ever buy a credit card debt relief service over the phone is if the salesman is not push and, gives you information and time to think. By information, I mean the company name, phone number and the special details of the option he offers. Ask the salesman to give you a day or two to think and do research on the company and the option provided. Even if it is a reputable company, make sure that the option is a good option for you!
About The Author – Joshua Rodriguez
Hi, I’m Joshua Rodriguez, I’m the proud owner of CNA Finance and an avid personal finance journalist. I’m currently working on a new project entitled “The 7 Habits of Financially Stable People“! Join the conversation about this article, my series or the personal finance topic of your choice on facebook. I hope to see you next week for the next post on Friday Finance with Josh!
Tracie is a stay at home mom to three young children; ages 4, 6 and 8 in Raymore, Missouri. In November 2007, she and her husband decided to eliminate their debt and made many changes in their lifestyle to do just that.
In 27 months, they eradicated over $37,000 in debt through both budgeting and learning how to live a frugal life. She now shares her knowledge in order to help you stretch your hard-earned dollars so you can live the life you want.