tuesday, march 18, 2008

In an ideal world, immediate debt management for clients with financial difficulties would be free. However this isn’t the case and the consequence of irresponsible borrowing could actually help you to diversify your product offering, and in turn help to increase your income.

Don’t worry, this idea isn’t as unethical as it sounds. As a spokesperson from leading debt management company, EuroDebt commented, ‘someone who has been on a five year debt management plan is far more responsible than someone who continues to default on their mortgage payments.’ It is therefore extremely important that you are able to refer clients to a reputable debt management company, when they do come to you for advice.

EuroDebt have been operating for 11 years and within that time have negotiated over 17,700 active debt management plans. They are currently touring the UK in a bid to inform mortgage intermediaries about their Introducer scheme. The scheme enables introducers, such as yourself, to refer cases to EuroDebt and in return receive a commission.

The content of the Birmingham road show highlighted that debt management plans are increasing in importance with borrowers in the current market. Lending criteria has tightened and there is now limited access to cheap credit. Re-mortgaging is not always an option, so a debt management plan can be a viable alternative to an IVA or bankruptcy.

Speaking at the latest Birmingham road show, Kevin Still, Director of EuroDebt commented, ‘people are looking for professionals that they can trust. There is growing consumer stress within the financial market with tighter lending, rising costs, economic uncertainty and a growing ‘credit hunger’.

‘We seem to have the mentality that we have the right to credit, it is more like keeping up with the Beckhams rather than the Jones. Many consumers think that they can borrow their way out of trouble. However we are now in a situation where denial is no longer an option’

The EuroDebt Introducer Scheme works by providing you with a dedicated website to refer cases to EuroDebt. The amount of advice which you provide to clients is in your control. When the Introducer Agreement is signed, you will be assigned a unique 6 digit reference number, which will become your unique Introducer website. A debt advisor appointment will then be set up with your client, and a joint relationship with yourself, your client and Eurodebt will begin.

During the Birmingham seminar, EuroDebt affirmed that their long term goal is to ‘make people debt free.’ The overall consensus was that clients shouldn’t be pushed into a debt management plan, but instead debt management should be given as an option. As Gareth Neill, the partner responsible for the National IVA service line with Grant Thornton explained, ‘the mortgage broker market hasn’t diversified their models yet.’ The roadshow highlighted that maybe this is the appropriate time for intermediaries to do so. 

Source: http://www.introducertoday.co.uk/News/