Once you speak to the CEO of a debt consultancy agency, you would possibly anticipate a narrative about monetary calculations and revenue margins. However for the CEO of Diamond Debt Aid, the story is way extra private. Daniel Smolensky has been concerned within the debt settlement and restructuring area straight out of school since 2016.
“Again then, I used to be a part of a startup, certainly one of simply three workers. However by 2021, I noticed severe points like deceptive enterprise practices and lack of real consumer care. That’s once I determined to launch Diamond Debt Aid. It wasn’t nearly filling a spot. It was about doing proper by individuals,” says Smolensky.
Launching the consultancy agency in December 2021 wasn’t only a enterprise transfer. “I’ve been there, juggling bank card debt myself and dealing arduous to get out of it. Constructing an organization that might assist others break away from that cycle was a no brainer,” he says. Now, his Manhattan-based agency has grown to 2 departments and is frequently increasing.
He displays on how his imaginative and prescient has advanced, “Initially, I wished to assist enterprise house owners slowed down by money advances. Immediately, we’ve expanded to supply consumer-focused debt companies in affiliation with JG Wentworth.”
Carving His Personal Path within the Crowd
Diamond Debt Aid doesn’t supply companies straight. As a substitute, they join shoppers with respected packages run by companions like Debt Consultants Group and JG Wentworth. “We give attention to guaranteeing shoppers are a match for these packages,” explains Smolensky. “As soon as they’re enrolled, our companion companies deal with the remainder. Nevertheless it’s our distinctive relationships and our affect in these partnerships that make the packages stand out.”
A big a part of the agency’s service is the Debt Consultants Group program. “This program is nothing like the everyday debt settlement schemes on the market. Normal debt settlement entails stopping funds to lenders, accruing funds in a belief, then renegotiating. However that method can imply harassment, lawsuits, and frozen receivables for enterprise house owners,” explains Smolensky, mentioning the important thing distinction in this system his agency recommends.
He says, “Debt Consultants Group reaches out to lenders as quickly as funds can be found to barter. We give attention to money circulation, not simply steadiness financial savings. Most of our shoppers see a brand new settlement with lenders inside a month. They’ll keep away from needing to borrow extra, which is usually what will get them into debt hassle within the first place.”
For people, the agency’s work with JG Wentworth stands out. Smolensky says, “With household-name recognition and top-notch sources, JG Wentworth’s program is an ideal match for shoppers with bank card debt, medical payments, or private loans. We advocate them confidently as a result of they supply a excessive normal of care, and that issues.”
Educating Shoppers on the Dangers of Money Advances
A big a part of the agency’s work entails educating enterprise house owners on the risks of service provider money advances. “These loans are dangerous not simply due to excessive curiosity however due to how they’re offered,” Smolensky says. “Brokers make guarantees of higher credit score, improved financing choices, financial institution loans and many others., none of which often come true. By the point shoppers understand this, they’re trapped in a cycle, struggling to handle a number of loans and scrambling for options.”
Diamond Debt Aid takes a distinct method. In line with Smolensky, “When a enterprise proprietor involves us, we begin by studying how they obtained concerned within the first place. As soon as we perceive their scenario, we are able to information them towards our debt restructuring program. We’re upfront in regards to the dangers of service provider money advances, like day by day funds and lack of regulation, so that they know what they’re coping with. We be certain shoppers are well-informed, conscious of each element, and totally on board with the method. The very last thing we wish is for somebody to really feel they’re not in management.”
Tailoring Monetary Methods for Success
Smolensky’s agency additionally supplies customized monetary evaluation. “For companies, we conduct a full scope evaluation of their monetary scenario,” he explains. “We have a look at revenue, mortgage agreements, and any proof of cost. It’s important that shoppers have enough revenue to finish this system efficiently.” For people, the corporate takes a barely totally different route. He says, “We carry out a radical funds evaluation utilizing JG Wentworth’s instruments. It’s all about constructing a sensible plan. We cowl every thing, from hire to gymnasium memberships. When shoppers are well-prepared, they’re more likely to achieve eliminating debt.”
Debt Administration Developments and The Function of Know-how
Within the present financial local weather, Smolensky sees two major tendencies. “Individuals are underneath growing debt strain, and unrealistic expectations can lead them into hassle,” he explains. “They typically chunk off greater than they’ll chew, however our job is to point out them there are sensible options. It’s all about having the suitable construction and sticking to it.”
With right now’s reliance on know-how, Diamond Debt Aid is aware of its significance however retains the give attention to particular person wants. In line with them, know-how helps individuals entry data simply, which is nice. However it might probably additionally result in partial or deceptive conclusions, particularly in monetary issues. Whereas tech is important, they nonetheless prioritize the individual behind the numbers. Debt is private, and that human connection is essential of their line of labor.
Recommendation to Keep away from Debt Traps
Smolensky’s recommendation for each people and companies is easy: consider your place and acknowledge any points early on. The earlier you determine potential issues, the extra time you must plan. When your again is towards the wall, it’s comprehensible that you just would possibly make a fast resolution. However if you happen to can, pause and take a better look. Don’t be swayed by provides that appear too good to be true — in the event that they do, there’s typically a catch. He advises speaking to somebody clear about your choices is well worth the time.
Safaque Kagdi is a Grit Every day Management Community member and a PR Advisor and Content material Author with 12 years of expertise. She is captivated with startup tales, entrepreneurial journeys, management, enterprise, rising artists and authors. She was acknowledged as one of many 2018 High 10 Girls Entrepreneurs by Silicon India journal.
