How to Set Up a Debt Management Company

According to creditcards.com, the average American household has more than $15,000 dollars in credit card debt alone. The total amount of U.S. consumer debt, as of March 2010, is close to $2.45 trillion dollars. With rising debt problems, many consumers have put their trust in debt management companies. As a result, ironically, debt has turned into a lucrative business, and now is a good time to create a debt management company.

Instructions

1

Earn a degree in finance or a related field. The debt management business is highly unregulated so a degree may not be required. However your customers will need to know that you are qualified before they trust you with their finances. Courses in human psychology and counseling might also be beneficial.

2

Contact your secretary of state's office to determine if you need a business license to operate a debt management company and if your business can be run for profit. Some states now only allow debt management companies to operate under non-profit status.

3

Learn the laws of your state regarding debt management businesses and credit. Some states have started to heavily regulate the fees that can be charged. Credit card and debt laws also vary among the 50 states. You need to become familiar with consumer rights and collection procedures in your state.

4

Decide where you want to do business. You may decide on renting an office, operating from home or making house calls to you clients. In each case, you need to have a phone line dedicated to your business and a post office box to receive correspondence.

5

Advertise your business. Consider leaving fliers at banks, credit unions and retail stores. Hand out business cards to prospective clients. Create a website citing what services you offer. If you operate locally, highlight this fact. Although large corporations have their advantages, some people feel a small business offers a more personal touch.

6

Consider taking on a few clients at no charge. If they are happy with your services, then use this in your marketing strategy.