Debt settlement is good alternative to bankruptcy for many consumers struggling with high credit card debt. In most cases, consumers will hire a professional debt settlement company to work with their creditors to pay off their debt at a reduced amount. They would also charge a nominal fee, usually 15-25% thereof the amount saved.
However, is it worth it financially to pay all these fees to settle your debts?
On one end, there are a lot of consumers who swear by professional firms as the best way to go. Here are just a few reasons why:
Creditors usually value the cachet a professional agency possesses
These companies often have relationships with the creditors and will be able to get you a better deal
While the process is not difficult, it does take time, effort, and patience.
But if you would rather bite the bullet and do all the dirty work yourself, consider these quick tips that might be of assistance:
Settling a debt is just like any other form of negotiation in life - you cannot get something in exchange for nothing.
Just because you feel that you are offering a good deal, does not mean the person you are negotiating with thinks the same way. Do not give up if your offer is rebuffed - make several offers and be patient.
Many people who try this DIY route in debt settlement think that they can still protect their much-valued credit score in the process of it all, but 99 percent of the time they are sorely mistaken - creditors weren't born yesterday, and are wise to these kinds of unreasonable arrangements!
Most of the time you will have to pay the entire aggregate of your debt, and not make payments - see point number one. So be sure to have enough spare cash on hand.
Use some strategy - if you are not behind on making payments, then you will want to get the strategic upper hand by NOT making payments. It would be foolhardy to believe that timely payments equate to a healthy discount from creditors. Take this money and set it aside for your settlement payment.
Finally, be patient. Negotiations are not like withdrawing cash from an ATM. But the longer you can hold out, the better deal you will get.
If this does not sound like something you can accomplish on your own, then you should seriously consider hiring a professional debt settlement company.
Otherwise, get ready to roll up your sleeves, make a few phone calls (letters are not as effective), begin negotiating.
And we wish you even better luck in saving up, spending your money wisely and slaying the dragon of credit card debt with conviction!
However, is it worth it financially to pay all these fees to settle your debts?
On one end, there are a lot of consumers who swear by professional firms as the best way to go. Here are just a few reasons why:
Creditors usually value the cachet a professional agency possesses
These companies often have relationships with the creditors and will be able to get you a better deal
While the process is not difficult, it does take time, effort, and patience.
But if you would rather bite the bullet and do all the dirty work yourself, consider these quick tips that might be of assistance:
Settling a debt is just like any other form of negotiation in life - you cannot get something in exchange for nothing.
Just because you feel that you are offering a good deal, does not mean the person you are negotiating with thinks the same way. Do not give up if your offer is rebuffed - make several offers and be patient.
Many people who try this DIY route in debt settlement think that they can still protect their much-valued credit score in the process of it all, but 99 percent of the time they are sorely mistaken - creditors weren't born yesterday, and are wise to these kinds of unreasonable arrangements!
Most of the time you will have to pay the entire aggregate of your debt, and not make payments - see point number one. So be sure to have enough spare cash on hand.
Use some strategy - if you are not behind on making payments, then you will want to get the strategic upper hand by NOT making payments. It would be foolhardy to believe that timely payments equate to a healthy discount from creditors. Take this money and set it aside for your settlement payment.
Finally, be patient. Negotiations are not like withdrawing cash from an ATM. But the longer you can hold out, the better deal you will get.
If this does not sound like something you can accomplish on your own, then you should seriously consider hiring a professional debt settlement company.
Otherwise, get ready to roll up your sleeves, make a few phone calls (letters are not as effective), begin negotiating.
And we wish you even better luck in saving up, spending your money wisely and slaying the dragon of credit card debt with conviction!
About the Author:
Whether you plan an extended holiday or quick getaway, chartis travel insurance should be the first thing on your to-do list.
0 comments:
Post a Comment