Debt Settlement, Done Your Way

Debt Settlement, Done Your Way
by Brian Burke

Although it is not typically done, it is possible for a consumer to duplicate imitate the methods used by a professional debt collection agency. There are definitely instances of success where people negotiate a debt settlement for themselves. These negotiations can be initiated by calling the customer service department of the credit card Company or by contacting the debt collection agency. The most frequent time that a credit card company will deal with a customer directly is when they are behind on payments but capable of making a lump sum payment. In this case, a payment plan is not an alternative. The credit card company will only accept a lump sum payment of the settled amount.

If you don't have the ability to pay the lump sum payment of your account then the advantages of settling a debt become restricted. One plus is that by negotiating your own debt, as a debtor you are able to save in fees that would have otherwise been paid to a debt settlement company. This way of working also gives the debtor a lot more power over the process. This could, or could not, be a motivational dynamic to continue working through the process.

The disadvantages are much more plentiful in this situation. Certain creditors will not settle directly with customers according to their or policies regarding debt settlement. Also, consumers may not be able to acquire as good of rates as they would through a debt collection agency. Customers could also face greater difficulty getting in contact with decision makers. This would result in long delays in any negotiations or paper work processing.

Debt settlement companies have a customer service department that supports the consumers with any questions or difficulties that arise. This support provides a great amount of value, especially in cases when the creditors become persistent. Any type of unfamiliarity of the settlement process can lead to slip-ups. You always want to be aware of any fine print and make sure that all correspondence and proposed settlement or agreement is carefully reviewed.

It is suggested that any settlement agreement is overlooked very carefully and by a third party. This will help to make sure that all terms are those that were agreed upon by both parties. It should be known that settling ones debt is an emotionally draining and very difficult process for those who are not professionally experienced. You should certainly weigh all options when deciding to take on the debt settlement or employ an outside service when dealing with a creditor or debt collection agency.