What a debt settlement program or debt negotiation company can do for you is exactly what you can do for yourself. Sure, the debt negotiators are trained and experienced in settling debt and dealing with unruly creditors, but if you have the courage it can be done DIY style.
Here’s what you need to do:
- Take a few hours to sit down, get out all of you credit card statements, figure out your take home income each month, and configure your budget. Whether you go DIY or you talk to a debt counselor or negotiator, they will have you do the same thing. You have to start out knowing where you’ve been, what you are spending, and what you’re able to put towards getting out of debt. You have to have something to negotiate with, like any other game.
- After figuring out your budget, do a little research. Know what your interest rates are and what you feel they should be based upon your budget. Be realistic in deciding on a number to negotiate with. In doing your research, look up the rules and regulations regarding your debt rights in your state. Each state has its own rules when it comes to creditors and debt.
- Prioritize your budget. I know this pre-planning seems time consuming, but it is necessary. Prioritize where your money should be going. Should you be heading out on Friday night or making sure you have enough for your mortgage? These are the things that got us into this economic mess in the first place; literally living beyond our means.
- Stop using your credit cards! This one I cannot stress enough. If you want to do this DIY debt negotiation, then you have got to take the first step by giving up that addiction. I know it’s rough, but it is completely necessary.
- Now comes the fun part; calling your lender. Take a deep breath, hold your head high, and find your confidence. Explain your situation. If you have had medical emergencies, a costly divorce, have lost your job, or any other uncontrollable circumstance that has led you into debt, be honest and tell them. If you were to call a debt negotiator today they would ask you about how you got into debt, and if you had an unforeseen circumstance it would be used by your negotiator to barter with the creditor.
- When you talk to your lender, be compassionate, honest, and genuine. I know it seems like a hard thing to do when they might just brush you off, but call again and again until you find results. This is where using a debt negotiator comes in handy, because they actually have the time and energy to call again and again.
- Ask your lender to lower your interest rates because you just can’t make those high payments. You want to pay down your debt, but you will not be able to do it with the high interest rates.
- Ask your lender if they will consider debt forgiveness. According to CNN, more and more card issuers are accepting dimes on the dollar as payment in full. Usually you have to be delinquent at least 90 days with a credit report that shows missing payments isn't common. Closing an account due to settlement will affect your credit score for years, and you'll pay tax if the forgiven debt is over $600.
- When getting out of debt on your own, it’s all about desire and commitment. Honestly, if you have those two things in your arsenal you will achieve results. It is entirely possible, but will take some time and a lot of effort. You will also have to change your spending habits, which is the hardest part of the entire process.
If you need help going the DIY route, or you’d like someone to do the work for you, don’t forget to contact us by filling out the form or giving us a call at 1-866-332-9312. And there’s always our debt services. Good luck!
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