Debt is the New Mortgage

Last year, 86,000 jobs were lost nationwide due to the credit crunch, mortgage meltdown, sub-prime slime (or whatever you want to call it).

Where did everyone go?

A number of former brokers have gone into debt settlement business. With homeowners unable to tap into their home equity, more and more troubled consumers are turning to debt settlement firms to reduce their debt by negotiating with creditors on their behalf.

The OC Register recently profiled Ray Kikavousi, an ex-broker who was laid off from former high-flyer Quick Loan Funding. Unable to find a job in the lending industry, he launched his own debt settlement firm. As the article described:

"Debt is something that everybody has, including myself, so it seemed like a new and upcoming business," he said.

He and a partner, Charles Park, have invested about $50,000 to launch their company, People Debt, which has an office in Irvine. Kikavousi said he cashed in a 401-k, borrowed from friends and family and took out a bank loan to start the business.

In a sense, he said, he's trying to make lemonade from lemons. During the housing boom, quite a few borrowers overextended themselves. Now that the bubble has burst, why not try to earn a living by helping borrowers pare their debts?

The fees aren't nearly as lucrative as what he enjoyed in his mortgage days, but Kikavousi says he wants to build a business that will last.

Has anyone else out there gone into debt settlement? How is it working for you? We'd love to hear your feedback.

Also, please visit the debt settlement leads section of BigMortgageLeads for information on getting fresh, real-time debt settlement leads to help drive your business.

Now get out there and close more loan ... or, more debt settlements! :)