Do It Yourself Debt Negotiation
Channel: debtreliefusa
Date: 04/12/2013

Do It Yourself Debt Negotiation

Do it yourself debt negotiation is possible but it will take a lot of guts on your part. It is also known as debt settlement and not everyone can negotiate with creditors and debt collectors without help. So if you are successful, that makes your debt freedom all the more possible.

While it is possible, you must do your research to make sure that you do this the right way. What you lack in expertise and experience can be substituted by an adequate amount of knowledge about the whole debt negotiation process.

So how does do it yourself debt negotiation work?

First of all, you have probably already fallen behind on your bills to consider this type of debt relief program. This is the only way you will prove to them that you are in a financial crisis and give them an incentive to work with you. Make sure that you are not sending any payments to your other creditors too - at least, those that are not your priority. You probably have to continue paying your mortgage to keep the lenders from getting your home.

When you stop sending payments to your creditors that does not mean you can spend it on something else. You must put aside the money to grow as your debt settlement fund. This is the fund that will play a significant role during the negotiation process.

As soon as the creditor notices that you stopped making your payments they will start calling you to persuade you to continue with your payments. This is when your patience, calm nature and determination will come into play. You must take each call and calmly tell the creditors that you do not have money to pay them. Explain how you lost your job or experienced an illness in the family - whatever the cause for your financial crisis may be. Just be honest and truthful about your financial condition.

There may be moments when the creditor will be aggressive and even threatening. Just keep your cool and understand that the creditor has reason to be cross anyway. After all, the debt is your responsibility.

When you have enough funds to offer your creditor, let them know that you are interested in debt settlement. You will then offer the funds that you had been saving on the side - even if it is a smaller amount than your current balance. Start with a figure lower than your settlement fund. You want to give yourself room to negotiate.

At first, the creditor may be hesitant to agree to the plan. But if you are persistent, you can get them to agree. Just make sure that your agreements are documented. Also, never agree to an amount that you cannot afford.

When you have finalized the negotiations, wait until you have the signed document in your hand before you send any payment. You want to have proof that they will forgive the rest of the debt as soon as you pay them the settlement fund. You can negotiate with your creditors just like you can negotiate the purchase of a new car. You will save money over hiring a company to do it for you. You can save yourself thousands in the process and become debt free sooner.

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