Every so often, an idea is sparked in the mind of a single individual that goes on to reshape the fabric of civilization, forever changing the course of the human history. Many times, the idea itself is so remarkably simplistic and obvious that it is a wonder that no one had thought of it before. This is the case for the innovative new debt relief program called “debt restructure.”
Debt restructure does not hold the same revolutionary significance of the printing press or the internet. It won’t change the way people communicate or the way that information is disseminated. It does, however, have the potential to shake up the entire industry 債務重組 and change the lives of millions of people. By introducing one simple concept to consumer debt relief, debt restructure may have forever changed the way people go about eliminating their debts.
The simple idea that will reshape the approach to consumer debt relief is rooted in what else, but capitalism. What debt restructure has done is introduce a third party investor to the process of negotiation with creditors. When a client enrolls in the restructure program, their debt is shopped to the investors called “debt buyers.” The debt buyers agree to purchase the consumer’s debt at a negotiated settlement, consequently becoming the new creditor. With the old debt is wiped out, a new one is created, and consumer then proceeds to make monthly payments to the new creditor. The reason this is revolutionary is because it eliminates the long period of non-payment to creditors that wreaks havoc on consumer credit ratings and credit repair begins almost instantly.
The effect of eliminating the non-payment period of debt negotiation is profound, and not just because it will help consumers recover from their debt faster. Without the significant damage to credit scores, debt restructure will likely become much more attractive to debt ridden consumers. Those that were previously deterred by the negative consequences of debt settlement will probably be lured away from the other traditional models of debt reduction services like credit counseling and debt management. This could spell trouble for debt relief services that don’t adopt the new restructure program. Even more importantly, it could result in less people needing to file for bankruptcy.