Many people believe that debt settlement or debt negotiation is a daunting task that is best left to the professionals. There is absolutely no doubt about the fact that experts at the debt settlement companies are well-versed with all the tricks of the trade, but that doesn’t mean you can’t get out of debt on your own. Following some simple tips mentioned in this do it yourself debt settlement guide will help you get through this process with ease. Even before you get in touch with the concerned authorities over this issue, you should prepare yourself for what is coming your way.
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Debt Settlement Preparation
The person on the other side will also have some expertise in tackling the causes of debt settlement negotiation, and not being prepared will only increase your chances of being caught on the wrong foot. Make sure that you have a concrete reason for debt settlement, as you will have to submit some documented evidence for the same. Remember that the creditor will show interest in the settlement process only when he realizes that getting a part of the payment is better than losing the entire amount. In the process of debt settlement, the creditor will also ask you to quote an amount that you can afford to pay and you have to be ready with this figure.
Do It Yourself Debt Settlement Guide
You must have noted that the cyberspace is overflowing with doing it yourself debt settlement kits – each of which claims that their ‘debt settlement strategies’ is the best. What all of them basically do is simply guide you through the basic process of negotiation under the garb of their technical expertise. You don’t need to spend your hard-earned money on buying any of these debt settlement programs, as the simple tips on DIY debt settlement given below will provide you with the same tips without touching your wallet.
Initiating Debt Settlement
The foremost step towards doing it yourself debt negotiation is to initiate it. You can either initiate the entire process by getting in touch with the creditor in person or resorting to a debt settlement letter. The telephonic conversation is yet another convenient method when it comes to doing it yourself credit card debt settlement, but your call will be directed to a customer service agent and you will have to request him to direct you to some person at the managerial level for initiation of the process. Not the best option as such, but you can also initiate the debt settlement process when debt collectors call you for the payment of outstanding debt.
Put Forth Your Settlement Offer
When you talk to debt collectors, it is highly unlikely that they will accept your offer as they are third party employees who are hired for the process of collection. You can initiate the debt settlement process with the collector, but he is no authority to grant you any settlement offers, and thus you will have to request the collector to guide you to someone who has the authority to negotiate a debt settlement. When talking to the concerned person, coming to the point is a better option than beating around the bush. You can start with the reason why it is not possible for you to pay the outstanding debt and put forth your offer. Something like paying 50 percent of the outstanding debt or requesting the creditor to exempt the rate of interest will be better to start off with.
Negotiation Your Outstanding Debt
Though the chances of creditors exempting the entire debt do exist, the same is almost negligible, and therefore it is better off to go ahead assuming that this option doesn’t exist in the first place. The sum of money that you offer as part payment has to be decent enough to grab the creditor’s attention and reasonable enough for you to be able to pay. Remember that the amount you quote is not the final amount, it will only decide the course of the entire process. The final amount will be decided in course of debt negotiation, with both parties putting forth their stance on the issue. When you come to a mutual agreement, you will have to make sure that you get the terms of payment in writing from the creditor. This will help you in case of any problems surface in the future. Find some more tips in settle credit card debt yourself.