Do-It-Yourself Debt Settlement – Can You Really Negotiate A Debt Settlement Yourself?

Do-It-Yourself Debt Settlement – Can You Really Negotiate A Debt Settlement Yourself?

Every individual’s financial budget has gone haywire, thanks to the recession that swept across the globe. All those who were leading a comfortable life and paying all dues on time have suddenly found themselves in lurch and not knowing what to do. Suddenly they have found themselves in an unenviable position of becoming a defaulter and a debtor. The credit card companies who used to after them for buying more credit cards from them are now hounding and harassing them for repayment.

In this situation what are the alternatives available so that you can legally pay off all your dues even when you are not is a position to pay off completely. To help you in situation the Federal Government has brought out several options out of which the debt consolidation and the debt settlement options are the best. Debt settlement option is open for those who have dues of more than $ 10,000.

But can you go in for Do-It-Yourself Debt Settlement?

Well, if you follow the following tips then you can really go in for Do-It-Yourself Debt Settlement.

Be aware of your complete financial position as to your income and expenditure. Also sort out those expenditures that you can cut down. Make a proper analysis of all your dues in respect to their tenure and interest rates. Start off with the dues that have longest tenure and highest interest rate.
Stop paying any monthly dues that you have been paying. Instead save that money for future settlement.
Don’t bow down to pressure tactics of the creditors. Instead try to make them believe that you are not in a position to pay off their dues and that you would be soon filing for bankruptcy as you have large amount of debts to be paid off.
The creditors would then like to go in for settlement. Write a letter to them proposing specific settlement. Always keep a record of all correspondences. You should never communicate by email but should do through the certified postal mail with delivery receipt request.
Also the creditors are willing to settle those debts where there is very little chance of them recovering the amount. In such cases they are willing to reduce your dues by as much as 60%.
Never accept any proposals even if favorable verbally. Always ask for the offer in writing. Always note down the name, employee id, date and time of your conversation for future references.
Your settlement offer should be in writing with the agreed amount, due date and most importantly include-
That it will be full and final payment with no dues left
That your account balance will show $ 0, in all credit bureaus
Exact wordings of any notation that the creditor intends to send to the credit bureaus.
Never make the payment in cash and always keep the receipt for your records. Always make your payment well in advance so that you are safe.
Follow-up with reporting bureaus for your annual credit report that is free and closely examine the results and see whether your creditors have compiled with their assurances.

Remember it is a long drawn process and may take months. Do-It-Yourself Debt Settlement requires loads of patience and smart handling from your end to match the creditors.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $ 10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

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