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Do-It-Yourself Debt Settlement

In general, only unsecured debt (not secured by real assets like homes or autos) can be settled for less than owed. Many people report success in negotiating a debt settlement for themselves. It's possible for a consumer to imitate the practices and methods of professional debt settlement companies successfully.

An individual can obtain a settlement agreement with a creditor, or its assignee, just like a professional debt settlement company can and, in most cases, should not be afraid to try. Initiation of negotiations can begin merely by calling the customer service department of the credit card company. Timing is everything; in general, the credit card company will only deal with a consumer when the consumer is behind on payments. A successful settlement occurs when the credit card company agrees to take a percentage of total account balance. A payment plan is typically not an option; the credit card company will usually demand that the consumer make a lump sum payment of the settlement amount.

Negotiating with a collection agency or junk debt buyer is somewhat similar to negotiating with a credit card company. However, many collection agencies (or junk debt buyers) will agree to take less of the owed amount than the original creditor, because the junk debt buyer has purchased the debt for a fraction of the original balance. As a part of the settlement, the consumer can request that collection is removed from the credit report, which is generally not the case with the original creditor. Even if the removal of the collection account from the consumer credit report has been successfully achieved as a condition of settlement during negotiations, the negative marks from the original credit card company may still remain.

Do-It-Yourself Debt Settlement is a much cheaper option than hiring a professional organization, and in many cases can be more effective, since the consumer is much more vested in the process than an impartial third party.

Creditor’s Incentives To Work With You

The creditor’s primary incentive is to recover funds that would otherwise be lost if you filed for bankruptcy. The other key incentive is that the creditor can often recover more funds than through other collection methods.

Collection agencies and collection attorneys charge commissions
as high as 40% on recovered funds. Bad debt purchasers buy portfolios of delinquent debts from creditors who give up on internal collection efforts and these bad debt purchasers pay between 5 and 25 cents on the dollar, depending on the age of the debt, with the oldest debts the cheapest. Collection calls and lawsuits can oush you into bankruptcy, in which case the creditor may not recovers any fund at all.

Do-It-Yourself Debt Settlement Kit

If you believe that you can settle your own debts, we suggest that you first obtain a Do-It-Yourself Debt Settlement Kit provided by the National Financial Awareness Network. This organization is a financial literacy company that offers educational products and services related to personal finance. NFAN provides independent information about credit, credit cards, debt relief options, consumer issues, identity theft and other topics for debt relief companies and their clients.

Their Do-It-Yourself Debt Settlement Kit provides a proven system for helping people negotiate directly with creditors to reduce their outstanding balances on credit cards and other unsecured credit accounts. The system is presented in three levels comprised of an audio seminar and workbook that includes worksheets, exercises and illustrations to guide you through the information.

While there is a fee for their kit, it is minimal compared to the cost of working through a professional debt settlement agency, which will typically charge you a percentage of the amount of debt saved through each settlement. Depending on the amount of debt placed in the program, this could easily amount to thousands of dollars.

The National Financial Awareness Network offer three choices for their Do-It-Yourself Debt Settlement Kit starting at only $59.99, a package for $129,99 and one for $279.99. Because the last package offers the entire kit and three courses, if you have a considerable amount of debt we strongly suggest you get the $279.99 package.

Before you purchase the Do-It-Yourself Debt Settlement Kit you may want to first obtain a FREE Debt Consultation. There is no obligation in doing so, yet the information that they provide may be invaluable to you. Feel free to ask the certified debt counselor any questions that you may have and then make an educated decision how to proceed. To request a free debt consultation simply call toll free 1800 DEBT.COM (That's 1800-332-8266). The counselor can help you determine the best option for your particular needs.

If you're undergoing financial hardship, don't wait until bankruptcy is your only viable option. Check out the resources available on our website and call 1800 DEBT.COM for a FREE Debt Consultation.


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