Debt settlement is a viable plan to become debt free. You have the choice of using a third party settlement company, or you can choose to settle your debt yourself. Here’s a few tips on choosing a do it yourself settlement program.
What is debt settlement?
Settlement or debt negotiation is the process of negotiating with your unsecured creditors to only pay a portion of what you owe. In return, you agree to pay that portion in one lump sum. There’s much more to it than that, and hence you will need a guide to move you through the process in the best way.
Why do it yourself?
When you hire a settlement company, they will want their payment for the most part upfront. The typical fee is 15% of your total debt, not the end percentage they negotiate. In order to pay the lump sums to your creditors, you pay into a special account until you have the amount needed. Trouble is, the debt negotiation company takes their cut first, slowing the entire process down tremendously. DIY debt settlement allows you to skip a service’s fees, thereby saving potentially thousands of dollars.
What is involved in DIY debt settlement. Can I really do this myself?
First off, yes you can do this. Thousands of everyday people do it yearly. Creditors would rather get something from you than have you file bankruptcy, where they would receive nothing. If you can keep good records, and save some money, you can settle your debts by yourself.
What should I look for in a do it yourself debt settlement program?
The most important thing is, do you receive personal coaching? In the form of telephone conversations, email messages, etc. You want the ability to ask questions and get clarification on points you may have difficulty understanding. Check out what type and how long of a guarantee the program offers too.
DIY debt settlement is a great way to lower your total balances owed, and finally be able to realize your goal of becoming debt free. Plus you’ll receive the satisfaction of knowing that you were able to negotiate settlements on your own, saving enormous third party fees.