You can settle debts on your own and save a considerable amount of money. If you are considering debt settlement, it may be in your favor to look into doing it yourself. There is a certain protocol to follow, but nothing that any average person cannot handle.
Be prepared to fly in the face of what you believe about credit card companies.
No matter how much a credit card company tells you they just want to help, or have convenient options for your benefit, don't necessarily believe them. Credit card companies are just like any business; as long as you are making your payments on time, everything is good. They appear to be your friend. But miss a payment either through a mistake or tough times and watch out! You can count on your rates and minimum payments to skyrocket.
The first step in debt settlement is to stop paying on your cards. The reason being, if your creditor is receiving payments, they won't negotiate. Miss three months or so worth of payments, and they will start to be willing to deal.
Sometimes after three months you may receive a settlement offer from the creditor. These offers are usually in the ballpark of 75-80%. You can agree to this offer, or hold out. You may be able to get an agreement for 20-50%.
Once you reach an agreement with your creditor, you'll most likely need to make the payment in one lump sum. Many people are able to use cash they have saved while not paying on their cards, or use income tax refunds, borrow from family members, etc.
A settled debt will appear on your credit report as settled, for less than the amount owed. While this is a mark on your record, it is less harmful than a bankruptcy. You can settle debts on your own, and save yourself perhaps thousands in the process.
Debt settlement is a way for you to potentially save thousands of dollars.
To see a side by side unbiased review of three highly popular do-it-yourself debt settlement programs, visit:Â Do It Yourself Debt Settlement.
John Phillips owns and operates www.diydebtsettlementcourses.com
Be prepared to fly in the face of what you believe about credit card companies.
No matter how much a credit card company tells you they just want to help, or have convenient options for your benefit, don't necessarily believe them. Credit card companies are just like any business; as long as you are making your payments on time, everything is good. They appear to be your friend. But miss a payment either through a mistake or tough times and watch out! You can count on your rates and minimum payments to skyrocket.
The first step in debt settlement is to stop paying on your cards. The reason being, if your creditor is receiving payments, they won't negotiate. Miss three months or so worth of payments, and they will start to be willing to deal.
Sometimes after three months you may receive a settlement offer from the creditor. These offers are usually in the ballpark of 75-80%. You can agree to this offer, or hold out. You may be able to get an agreement for 20-50%.
Once you reach an agreement with your creditor, you'll most likely need to make the payment in one lump sum. Many people are able to use cash they have saved while not paying on their cards, or use income tax refunds, borrow from family members, etc.
A settled debt will appear on your credit report as settled, for less than the amount owed. While this is a mark on your record, it is less harmful than a bankruptcy. You can settle debts on your own, and save yourself perhaps thousands in the process.
Debt settlement is a way for you to potentially save thousands of dollars.
To see a side by side unbiased review of three highly popular do-it-yourself debt settlement programs, visit:Â Do It Yourself Debt Settlement.
John Phillips owns and operates www.diydebtsettlementcourses.com