When you talk to the CEO of a debt consultancy firm, you might expect a story about financial calculations and profit margins. But for the CEO of Diamond Debt Relief, the story is far more personal. Daniel Smolensky has been involved in the debt settlement and restructuring space straight out of college since 2016.
“Back then, I was part of a startup, one of just three employees. But by 2021, I saw serious issues like misleading business practices and lack of genuine client care. That’s when I decided to launch Diamond Debt Relief. It wasn’t just about filling a gap; it was about doing right by people,” says Smolensky.
Launching the consultancy firm in December 2021 wasn’t just a business move. “I’ve been there, juggling credit card debt myself and working hard to get out of it. Building a company that could help others break free from that cycle was a no-brainer,” he says. Now, his Manhattan-based firm has grown to two departments and is continually expanding.
He reflects on how his vision has evolved, saying, “Initially, I wanted to help business owners bogged down by cash advances. Today, we’ve expanded to offer consumer-focused debt services through partnerships with the top service providers.”
Carving His Own Path in the Crowd
Diamond Debt Relief doesn’t offer services directly. Instead, they connect clients with reputable programs that can help people struggling with business or personal debt. “We focus on ensuring clients are a fit for these programs,” explains Smolensky. “Once they’re enrolled, the companies we hand them off to handle the rest. But it’s our unique relationships and our influence in these types of partnerships that make the programs stand out.”
A significant part of the firm’s service is to explain the benefits of the business debt restructuring program. “This program is nothing like the typical debt settlement schemes out there. Standard debt settlement involves stopping payments to lenders, accruing funds in a trust, then renegotiating. But that approach can mean harassment, lawsuits, and frozen receivables for business owners,” says Smolensky.
Smolensky explains the key difference in the program his firm recommends. “In this program, the company reaches out to lenders as soon as funds are available to negotiate. The focus is on cash flow, not just balance savings. Most of the clients see a new agreement with lenders within a month. They can avoid needing to borrow more, which is often what gets them into debt trouble in the first place.”
For individuals, the firm’s work with the top service providers stands out. He says, “With household-name recognition and top-notch resources, these programs are a perfect fit for consumers with credit card debt, medical bills, or personal loans. We recommend them confidently because they provide a high standard of care, and that matters.”
Educating Clients on the Risks of Cash Advances
A large part of the firm’s work involves educating business owners on the dangers of merchant cash advances. “These loans are harmful not just because of high interest but because of how they’re sold,” Smolensky says. “Brokers make promises of better credit, improved financing options, bank loans etc., none of which usually come true. By the time clients realize this, they’re trapped in a cycle, struggling to manage multiple loans and scrambling for solutions.”
Diamond Debt Relief takes a different approach. Smolensky explains, “When a business owner comes to us, we start by learning how they got involved in the first place. Once we understand their situation, we can guide them toward the debt restructuring program. We’re upfront about the risks of merchant cash advances, like daily payments and lack of regulation, so they know what they’re dealing with. We make sure clients are well-informed, aware of every detail, and fully on board with the process. The last thing we want is for someone to feel they’re not in control.”
Tailoring Financial Strategies for Success
Smolensky’s firm also provides personalized financial analysis. “For businesses, we conduct a full scope analysis of their financial situation,” he explains. “We look at income, loan agreements, and any proof of payment. It’s essential that clients have sufficient income to complete the program successfully.”
For individuals, the company takes a slightly different route. Smolensky explains, “We perform a thorough budget analysis using our service providers tools. It’s all about building a realistic plan. We cover everything, from rent to gym memberships. When clients are well-prepared, they’re much more likely to succeed in eliminating debt.”
Debt Management Trends and The Role of Technology
In the current economic climate, Smolensky sees two main trends. “People are under increasing debt pressure, and unrealistic expectations can lead them into trouble. They often bite off more than they can chew, but our job is to show them there are practical solutions. It’s all about having the right structure and sticking to it.”
With today’s reliance on technology, Diamond Debt Relief knows its importance but keeps the focus on individual needs. According to them, technology helps people access information easily, which is great. But it can also lead to partial or misleading conclusions, especially in financial matters. While tech is essential, they still prioritize the person behind the numbers. Debt is personal, and that human connection is crucial in their line of work.
Advice to Avoid Debt Traps
Smolensky’s advice for both individuals and businesses is simple: evaluate your position and recognize any issues early on. The sooner you identify potential problems, the more time you have to plan. When your back is against the wall, it’s understandable that you might make a quick decision. But if you can, pause and take a closer look. Don’t be swayed by offers that seem too good to be true. If they do, there’s often a catch. He advises talking to someone transparent about your options is worth the time.
