subject: Negotiate Debt Yourself Or Use A Settlement Company? [print this page] Negotiate Debt Yourself Or Use A Settlement Company?
A change in your financial circumstances may lead you to consider using a debt settlement company in order to write off part of your debts. Professional debt settlement companies do this every day for thousands of people, but it is perfectly possible to do it yourself and save on having to pay any fees out of the savings you make. You can use a debt settlement company if you prefer to leave it to an expert and do not mind paying for the best results. If you choose to negotiate debt yourself you are only likely to achieve results as good as the professional if you get some detailed help to guide you through the process. Even paying for a good guide is a lot cheaper than the fees of a debt settlement company would be.
Your debts could have arisen for a variety of reasons, including job loss, sickness or marriage break up, or it may be that what started out as manageable debts have simply grown beyond the point at which you can repay them. There are several routes open to you to help you wipe out your debt completely. If your debts are fairly serious, but you have a steady source of income and some money left over to go towards your debts, you may want to look at a debt management plan. For more serious debts, you can either try debt settlement or negotiating with creditors directly.
In order to accurately compare organizations and be sure of finding good value, you should apply to several companies through their websites and make a decision based on the proposals that come back. Debt settlement companies ought to be able to negotiate lower settlements than you could if you were doing it yourself, but only because the larger companies tend to have more leverage due to the fact that they are acting on behalf of many other people too. They also know how all the different creditors operate and they have a good understanding of the laws.
You can try to negotiate debt on your own but you should follow recommendations for some of the best guides on how to do this. There are lots of these out there, but the best ones offer detailed advice including scripts for phone calls and letters. While making the negotiations and when you come to an agreement, be sure to get an outline of the payment plan and ask to get the debt taken off your credit report. The least they should do is mark it as paid in full. Do not make the payment until you receive the payment arrangement back in writing, no matter how pushy the collector gets. Since debt collectors receive commissions you may receive a better deal if you negotiate debt at the end of the month.
No matter which way you choose you have a great chance at reducing your debt if you have not made any payments to the creditors in the last few months. This way they will actually be willing to work with you or your nominated debt settlement agents.
