Despite advertising to the contrary by some debt settlement companies, you are well-positioned to negotiation with your creditors using proven and effective DIY settlement tips and coaching . In other words, there is no need to pay a lot of money to a debt settlement company to negotiate for you, and doing it yourself means that you’ll have more money to put toward your debts so you’ll get out of debt faster.
Know how to make DIY debt settlement work for you.
For these reasons, the services of a debt settlement firm that will support your do-it-yourself efforts with information, advice and encouragement can be invaluable. If you decide to get this kind of help, here is some of what you will learn:
For credit card issuers and the collection agencies they hire – Something is almost always better than nothing.
Creditors understand that a certain percentage of the consumers they extend credit to won’t be able to repay what they owe. They set aside a reserve for losses in anticipation of defaults. They also want to minimize the amount of those losses. One way that most of them do that is by agreeing to settle past due debts for less than the full amounts owed. However, each creditor has its own policy regarding what it will settle a debt for. For example, you may find that you are able to save 60% with one creditor, but only 45% with another. For more detail read Debt Settlement-Why Banks Do It.
When it comes to debt settlement and getting the best results – timing matters.
The creditor you’re negotiating with may reject your offer, maybe because it’s too small, in which case you may want to increase the size of your offer, if you can afford to. It’s also possible that your offer was rejected because you’re off on your timing, or because there was irregular activity on your account prior to your defaulting on credit card payments. For example, before you stopped paying on the account, you tapped it for large cash advances, used it for balance transfers, or you suddenly began using your card much more than you had in the past. Of course, some creditors may simply refuse to settle with you, in which case you’ll have another shot at settling if your account is sent to collections or sold to a debt collection agency.
If you would like a complete understanding of how settling with creditors works be sure to check out the debt settlement section of our newly published free debt relief system. We hold nothing back in this effort to help people get informed about how settlement works, and when it works best. Check out the step by step guide on our site starting with: What is debt settlement.
Settle your credit card and collection accounts sooner rather than later.
If you are going to negotiate with an original credit card issuer (the bank that extended you credit), usually you must do so before the account you want to settle is more than six months past due. Otherwise, you’ll have to try to negotiate a settlement with the collection agency that your creditor may hire to collect your debt, or with the agency that may purchase the debt. Complexities do exist. The more accounts you have with different creditors, the more strategic you will need to be in how you prioritize the accounts. Having a debt settlement plan in place will help you maximize savings and defer risk.
Settling credit card and other debts yourself works better than hiring a debt settlement company for most people.
Be ready to roll with debt collector punches.
Although settling a debt is not difficult when you are doing it yourself, you may end up feeling lost, frustrated, or unsure about what to do next. That’s why having the support and assistance of a pro, and even your peers, can be so helpful. A pro can help you understand the details and nuances of the process and provide encouragement and support when you need it, and can also be available to help you figure out when you should take a dive and when you ought to throw your best punch based on real time data that you typically would not have.
Get expert do it yourself debt settlement help for a low cost.
Consumer Recovery Network provides you all of the information and tools you need to settle your own debts. We offer unlimited support throughout the debt settlement process. If you don’t want to settle your own credit card debts, or try and are uncomfortable with it, you have access to professional services to negotiate your credit card and other debt. You’re only charged if the settlements are successful. The fee for direct debt settlement services through CRN is affordable and fair – 15% what you save. We are one of only two professional resources that we know of in the country with this debt negotiation service offer.
Settling credit card debts that you can no longer afford is simple when you know what to do and when to do it. We have built a business model that helps people help themselves first, while achieving equal or better results without hiring us, or any other debt settlement company. We know the concept of negotiating debts on your own using DIY debt settlement can first seem daunting. That is often because you “don’t know what you don’t know”. That is why we offer free online education about how to settle your credit card debt yourself. We even provide expert feedback through the comment sections of each page on the site – at no charge. The fact is – you don’t need to hire anyone to negotiate and settle an account for you until:
- You have the money in place to pay your settlement agreement.
- You understand how to settle debts on your own, but choose not to.
- You have a situation where working with a pro will provide a better outcome (it happens).
If you have questions about how settling debts yourself can work for you, post in the comments below and get started on your debt relief journey.