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Debt Consolidation
Debt Reduction: Negotiating Your Own Debt Settlement
Some consumers might think going to a debt reduction specialist
for a debt settlement is a waste of time. Many people think they
attain debt reduction and negotiate the debt settlement themselves.
Certainly, any debtor can approach their creditors to try and
obtain a “better deal” on the interest and crushing
payments they’re dealing with now. But are they skilled enough
in dealing with people AND finances, to come away with an advantage,
or will they find themselves in worse shape than before?
No matter how honest you intend to be with a creditor, some information
that seems relatively harmless to you, may end up as grounds for
a refusal of your debt reduction or debt settlement request. If
you hesitate in telling them something, because you aren’t
sure if you should, that too can have a negative impact when the
creditor begins to wonder what else you aren’t telling them.
If you try to use the services of a credit counselor after a failed
personal approach, they may find the creditor unwilling to re-open
your file.
A third party debt reduction and debt settlement specialist,
usually a professional counselor with a credit counseling agency,
is much more conversant with what the creditor wants to hear,
and how to present your case and your finances in the light that
will gain you the greatest benefits in asking for debt reduction
or a debt settlement. These debt reduction and debt settlement
agencies work on a percentage of what you save through their efforts,
so it’s in their best interests to get you as many concessions
as possible. The more you save, the more they earn. Or to look
at it from another angle, the more they are earning, the more
they are saving you!
Anyone who deals with the public, or has a thorough understanding
of financial issues, may have the basic skills to open negotiations
with their creditors. They may even be successful in getting a
debt reduction or debt settlement agreement, although not with
all the benefits that a trained professional credit counselor
knows are available. There are also legal and future financial
considerations that may come as a surprise to the inexperienced
debtor attempting their own negotiations.
For the best results, use your best weapon, a trained debt reduction
specialist.
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