Can you settle debt yourself?

Thinking of settling debt yourself? Know what you’re up against.

Debt can be overwhelming, settling debt yourself can be even more. As a young borrower getting your first credit card is a pretty exciting moment. But, without education and guidance, this credit card debt can quickly become unmanageable. When credit card debt becomes unmanageable, late fees and interest start piling up. Often times this compounding of fees and interest raises your balance to a point that is near impossible to get ahead. Some choose to battle their debt themselves. Others turn to an expert debt negotiator to use their proven experience.

When you find yourself in this position, it’s time to make some big decisions. Credit cards are designed to keep you in debt. The interest that accrues on unsecured debt when you only make minimum payments makes it near impossible to pay off that debt once you’re behind. When you fall behind too far, your account is likely to be sent to collections.

Once in collections, the party that has received your debt to collect begins a process of aggressive communications and tactics. Remember, they have bought this debt for pennies on the dollar. The original creditor has already been paid by the collection agency that bought the debt. Now, the collection agency wants to recoup as much of that cost as possible.

This is called leverage.

What collection agencies don’t want you to know, is they didn’t likely pay very much for your debt. For instance, let’s say you owe your original creditor $10,000 – If you begin missing payments and your account goes into default, the original creditor may consider “selling” your debt to a collection agency. The collection agency may buy a $10k debt for $4k, and then pursue you for the full $10k.

This is why debt settlement works. A collection agency stands to make massive profit when you pay off that debt. Debt settlement negotiators are trained to identify the best timing, scenario, and cost to settle a debt for the absolute lowest amount possible.

That seems like something I could do. Why do I need a debt negotiator?

That’s because it is! Anyone can settle their own debt with a collection agency, but it won’t be easy. Simply call your collector and tell them the amount you wish to pay to settle the debt completely. The outcome of this call may not be pleasant… collectors are known aggressors, utilizing scare tactics and high pressure sales to scare consumers into paying. Will you know how to handle this while trying to settle your debt?

The real question is, should you and how effective will it be? When you work with a licensed and reputable debt settlement company, you have a team of negotiators working for you. These guys know the collectors, how they operate, when they’re likely to settle, and when they’re not being honest. This means they’re equipped with the tools and resources that give them the advantage to get your debts settled for the absolute minimum.

Benefits of using a trusted debt relief company, and a certified debt negotiator.

When you choose to work with a reputable debt settlement company, you are essentially hiring a team of experts to resolve your debt on your behalf. There’s a series of licensing and accreditations that a legitimate settlement company will be a part of. Some of these include the American Fair Credit Council and the Department of Agriculture and Consumer Affairs.

In addition, a settlement company has a team of negotiators. They have been working with these collectors for several years and know how, when and for how much to settle to get you the best savings.

Main distinctions between settling debt yourself or through a debt settlement company.

The main distinctions between debt settlement through a company and settling debt yourself are the time, stress, and cost factors. A few things to check before deciding to attempt settling debt yourself:

  • Are your debts legitimately delinquent?

A collector is highly unlikely to settle a debt that you aren’t delinquent on. Generally, you need at least 3 to 6 months of missed payments before a collector will begin to listen to settlement offers.

  • Do you possess enough money needed for settlement?

Settlement agreements are immediate and there are no rain checks. If you call a collector, agree to a settlement, you must pay it. You don’t get a second chance.

  • Do you have enough skill and time to negotiate settlements?

Collectors are tough. It’s their job to aggressively convince people to pay. Often times employing aggressive and harassing tactics to do so. Seasoned debt negotiators know how to handle these guys. Not to mention, negotiating a settlement can take days or weeks. This is the sole job of a debt negotiator.

Sometimes it’s best to let the experts handle your debt.

Facing creditors and collectors with the already overwhelming pressure of outstanding debts can be a very tense and intimidating experience for many people. Luckily, there are multiple reliable options to help minimize or even nullify the debt you owe. But, trying to negotiate and handle this element of credit management on your own can prove quite challenging. If you find yourself in a position where you need help with your credit and your debt, you may want to pursue a Credit Counseling firm.

Trusting and engaging with a professional debt relief agency or firm is often your best option. Their relationships and strategies are time tested. These experienced, knowledgeable and skilled negotiators can guide you to handle everything necessary to get your debt related problems under control once and for all.


Your partner in debt relief,
Consumer First Financial