Debt Settlement On Your Own – Discover The Hidden Dangers
It’s no secret that times are pretty hard. So hard that many people feel that they need a DIY solution to all their financial woes. But is this a good idea? Should you be pursuing things like debt settlement on your own? This article will expose the dangers of the DIY approach, and after reading you’ll understand why it’s imperative that you seek some sort of professional help lest disaster besets you.
How Debt Settlement Really Works
The process of debt settlement is a cumbersome one. It involves skillful negotiations and a clear case must be made before a creditor will consider settlement. The main reason the process is so cumbersome is because creditors often stand to lose quite a lot. It’s not uncommon for a creditor to settle an amount in excess of 60% of what is owed. And you must always bear in mind that this settled amount is a complete write-off – the creditor will never recover this amount.
What’s Wrong With The DIY Approach?
One of the main reason why pursuing debt settlement on your own is a bad idea is because your chances of success are slim to none. Many creditors, particularly credit card companies have a habit of avoiding entirely, any negotiations with individual account holders. Lenders for the most don’t feel justified in dealing with you and me because of the huge costs involved in one-on-one negotiations.
Often too, lenders will feel that pursuing the debt or even passing it on to a collecting agency is a more financially expedient option. These practical difficulties among other things are the main reasons many people fail to get a good results with DIY debt settlement.
Settlement Best Practice
For you to get a settlement in the region of the 60% mentioned above, your best chance lie with contracting a debt settlement company to handle negotiations on your behalf. The good thing is that most operate online and are very easy to find. You’ll get big discounts for using an online company, and more often than not, they’ll give you a free initial consultation.
I hope I have persuaded you successfully from trying to achieve a settlement on your own. It sound counter intuitive but that was my aim. I have seen too many people end up worse off because they didn’t seek help and I don’t want that to happen to you.