| For one thing, these programs charge 20 to 25% | | | | your whole debt total down by 50-80%, |
| of the original balance as a fee. | | | | do-it-yourself debt settlement. YES! Your creditors |
| Credit card companies have less patience dealing | | | | are going to forgive the majority of your debt |
| with these institutions. They would rather deal | | | | and you will be able to move on with your life |
| directly with their clients. So dealing with the | | | | within 6months. |
| expensive debt management program has a | | | | It is Important to understand the big picture of |
| negative effect and could back fire on you, usually | | | | do-it-yourself debt settlement and the step by |
| sending your account more quickly to collection | | | | step credit card negotiation process below: |
| agencies that will pursue the accounts in a more | | | | (1) Accumulate eg: $25,000 in unmanageable debt |
| aggressive fashion than by doing it yourself. | | | | (2) Decide that debt settlement is the right option |
| So: | | | | (3) Stop making all monthly payments. |
| *Do you want to avoid bankruptcy? | | | | (4) Put money in a savings account or get a loan |
| *Do you want to rebuild your credit between 24 | | | | from family/friends w/ 0% interest, if possible |
| to 30months from the settlement date at or | | | | (5) Identify the "sweet spot" at around 180 days. |
| before charge off vs. the 10year bankruptcy | | | | Best negotiation is between 150-180 days. |
| mark on your credit? | | | | (6) Settle for as much as 50 to 80% off the |
| *Do you have more than $5k in credit card debt? | | | | original balance depending on each creditor. |
| *Are you at the stress point financially? This is | | | | (7) Written proof via a settlement letter. What to |
| where my husband and I were before starting | | | | look for in a proper debt settlement letter. |
| our relief journey into doing our own settlements. | | | | PLEASE don't hire a third party to assist you with |
| *Do you want to finally find within 6-8months, a | | | | this because they want a percentage of YOUR |
| final closure to your debt by negotiating the final | | | | DEBT as their commission! The do-it-yourself |
| amount owed for only 50% to 20% of the | | | | approach keeps most of the money in your |
| original balance? | | | | pocket. |
| *Do you want to learn what needs to be done | | | | Why would your creditors take such low |
| with the negotiation process, what to say and | | | | amounts? Creditors get to the point where they |
| when? How to protect yourself with the right | | | | know that you are not going to pay the balance |
| settlement letters and the right wording to look | | | | off. They are further threatened by the fact that |
| for? | | | | if pushed far enough you just might file for |
| If all the above is a yes then the do-it-yourself | | | | bankruptcy and then they won't get anything in |
| like we did debt settlement or DIY debt | | | | some cases. Yes, they could turn it over to a |
| settlement is definitely for you Vs. Settlement | | | | third party collection agency but then they are |
| programs! Now what is the basic process of debt | | | | going to lose another chunk to them, as a matter |
| settlement? | | | | of fact, they may sell your accounts that are |
| Negotiation is the skill that you are about to learn, | | | | past the charge off date to collection agencies for |
| not just to settle what you feed your credit card | | | | 5 or 10 cents on the dollar. |
| companies monthly but you are going to bring | | | | |