What you actually don’t know is that negotiating debt settlement on your very own is not that easy. But if you can take down the steps right, it will save you a lot of time and money as well, when compared to hiring a debt settlement firm for the help. With the help of DIY debt settlement, you can always negotiate directly straight with the creditors in an effort to settle the debt for less than what you have owed originally.
The strategy happens to work great for those debts, which are known to be delinquent. Creditors, when they get to see some missed payments all stacking up, then they might open to settlement mainly because for them, partial payment is always better than nothing at all on the plate. Debt settlement is primarily an option in case the fees are at least around 90 days late, but it happens to be way more feasible when you are behind five months or more. As you have continued missing payments while negotiating, this can add damage to credit stack already piling up. So, there will be no guarantee whether you will have a deal at the end of the communication or not.
Better ways to handle debt:
There are so many better ways for you to manage debt and one of that has to be debt settlements. You can go through the debt settlement reviews to learn more about the plans and then work out on that accordingly. You can work out on the steps using some DIY skills, which you shine through. In case you have decided to proceed, then you have to handle debt settlement based negotiations all by yourself. It happens to be one better option than just using a debt settlement firm, which can sometimes prove to be quite expensive and not sufficient enough.
So, there are some proven ways over here, which are talking about ways in which you can compare DIY debt settlements with that of taking help from a debt settlement firm. You can also get to understand how you can negotiate with creditor right on your own.
DIY based debt settlement versus the companies:
Always remember that cost and time are two of the significant distinctions between the area of debt settlement through the company and doing it all by yourself can help you out a lot.
- Debt settlement based advertisements have already claimed that companies can always help customers in reducing the debt by around 50% and they can quickly get the team out of debt in as little as about 36 months.
- But if you follow some of the DIY debt settlement steps, then you might get hold of your results at quite a faster pace. While you are completing plan through a company, which can take around 2 and half years or even more, you can always settle debt right on your own within no more than six months of just going delinquent.
- With the help of the reliable debt settlement firms, you can always pay a fee of around 20% to 25% of enrolled debt once you actually agreed to a negotiated settlement. On the other hand, you might have to make another round of at least one payment right to the creditor from an account set up for this said purpose.
- Along with that, you can always be prepared to spend around setup and a monthly fee which is related to the payment account. In case you plan to pay an amount of $9 per month for managing account then you have to pay another set of $9 for account setup. You can even pay upward of around $330 over a period of 36 months along with the fee added for settling the debt.
You must always know that these debt settlement firms have inconsistent success rates. It has been a known fact that the Consumer Financial Protection Bureau has already logged over 330 complaints against some of the debt settlement firms since 2014. Some of the most common issues are related to fraudulent cases. In the year 2013, the CFPB also took some of the legalized actions against one company, when it claims that the firm failed to settle any of the debt for around 89% of clients. After, this company, which was based in Florida, had to shut down the operation, after getting a court order.
Get to pay it on your own:
If you ever decide to negotiate with creditor right on your own, there are some procedures that you have to navigate for that savvy and determined help. You have to go through the steps really well and avoid getting any question in mind for sure.
- First of all, you need to determine if you are a perfect candidate for this service or not. Have you ever got involved in credit counseling or bankruptcy? Do you think that your debts are already delinquent? Do you have any monetary burden on your shoulder that you have to settle? Do you ever believe in your current ability to negotiate? These are some of the points, which you have to get answers first before moving forward with the next steps.
- Moreover, you have to be sure of your terms. You have to negotiate two significant things in this rear. One is how much you are comfortable in paying, and another one is the amount you can report on credit reports. For the payments, it is often requested to settle for around 40% to 50% of the money you owe the lending firm. Anything lower than that is hardly accepted.
It is you who have to make the call in this regard. Dealing with a creditor can always ask for persistence and some persuasion. It is often a crucial moment of the entire settlement process. You should not lose hope and stick to the realm of debt settlement to get the best result immediately. You are always asked to get help from the strong teams which are working online and ready to help.