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.