I’d Like to Settle My Debts Without Using a Service. – Kathleen


“Dear Steve,

I currently have 3 credit cards I owe on for a total of approximately $3500.00. I have been receiving calls from the companies because I am behind on payments and would like to contact them to make arrangements to settle these obligations over the next 6 months. The amounts I actually owe is less, but the fees have piled up to make the balances higher and I don’t know how to begin to negotiate a settlement with them to settle the matter.

Could you please advise what I need to do to negotitate a settlement that would help eliminate the fees and pay off the debt? I would like to do this without using a service. Thank you


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Dear Kathleen,

Ultimately a debt settlement is nothing more than a meeting of the minds between two parties. But for the most part when you are trying to settle your own debt you are at a tremendous disadvantage. It’s a bit like wanting to save money and filling your own cavity instead of paying the dentist.

When you attempt to settle your own debts the biggest problem is that you too emotionally attached to the situation and can be easily manipulated by the creditors with threats and intimidation. Also, since you have no experience in negotiating with that creditor you have no clue about what the best deal they will offer or accept right now is.

Personally, I think it is foolish for consumers to wade into these waters without experience and knowledge and I always recommend using a professional debt settlement provider to help you with this. Having done many settlements for people myself I personally know the benefits of being a third party that intervenes in these situations.

A good debt settlement professional develops relationships with the creditors and knows when they can push and when they can’t. They also know the best time of the moth or year that the best deals are available and the debt settlement professional also recognizes when not to push any further or the deal will be blown.

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Just remember this, the best deals for settlements are available when you have the cash in hand to pay the agreed upon amount now. Do not head into a debt settlement expecting to make monthly payments. The monthly payment approach to save up money to make a settlement that is offered by some debt settlement companies should be avoided.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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