The United States Government Accountability Office, and the Federal Trade Commission with individual state investigations of the Debt Settlement industry says in one of their report that less than 10% of individuals, small business owner and or organizations who enrolled in a debt settlement program actually completed the process i.e. only a few debtors became debt free by using the services of a debt settlement company.
It is upon this abysmal showing that it is being argued that individuals/small business owner learn how to reduce or settle their debt by going through the debt settlement process by themselves. Perhaps you are still not sure whether to do it yourself, consider the following advantages DIY debt settlement brings to the table.
- You only possess the intricate knowledge about your indebtedness and the solution also lies with you
- You do not incur further expense by doing it yourself
- You save a substantial amount of time since you do not have to search and research debt settlement companies
- You can’t be scammed by doing it yourself
- Creditors and or lenders are more predisposed to negotiating debt settlement/reduction with you.
Now that you are ready to negotiate debt relief through debt settlement yourself here are the basic steps you will need to take in other to negotiate debt settlement or reduction on your own
Acquire the necessary knowledge about the debt settlement process: since you apparently lack the financial acumen otherwise you wouldn’t be in this precarious situation. It is time to acquire the basic financial knowledge necessary for negotiating a debt settlement. Your credit reports and checking balance reports together with other financial reports it’s a good place to start. Learn and understand all terminologies related to debt settlement and the process of getting financial freedom
Create a debt settlement plan: You must by now understand the need for a settlement program and plan hence the need to create one. No, the minimum amount you can afford to pay various creditors before proceeding to negotiate a settlement with the individual creditor.
Come up with different settlement plans and strategy: it is foolhardy to think your creditors will jump at your plan immediately. Be ready to come up with different settlement options and be willing to shift grant in your negotiating process.
Save for the execution of your plan: The moment you decide you want to negotiate debt settlement with creditors or lenders, the moment you stop paying your debt. Rather use the money to start a savings plan. Debt settlement process requires a lump sum payment to creditors or lenders and if you can demonstrate that you have substantial amount with which to pay off the renegotiated debt immediately the easy it becomes to negotiate with lenders or creditors.
Be bold be patience: you will need all the courage you can muster in other to approach a lender or creditor. Be bold to lay down an offer before your creditor or lender, start by offering a low but reasonable bid the negotiating process might be tedious however be patience and never negotiate out of fear.
Make it plain: your situation may increase the pressure on you to get it done fast, however, do not succumb to pressure either internal or external pressure and finally make sure you have a written agreement signed between your lenders or creditors and yourself.
It is noteworthy to state here that using a debt settlement company or financial advisor is always better and saves you lot of time.