A Guide for DIY Debt Settlement

A Guide for DIY Debt Settlement

People have a hard time admitting they have a debt settlement problem. They opt for counseling after it has been too late, and there isn’t much to do now. Well, if you are having some debt issues and you can get your neck out of it, we have a few tips to help you out.

The Debt Manager

If you are having a hard time keeping track of your debt, then you better become your own debt manager. No one knows your financial situation as you do. Besides you can’t explain a third-party person everything including how much money you borrowed, how much money is owned, and are there any other issues related to your debt or not?

This may sound like daunting, but if your plan is failing for a long time, you need to organize everything, including your monthly payments.

The Lone Wolf

If you are confident you can handle the debt negotiations on your own, then you should better prepare with the following:

  • Upfront

Your lenders are interested in at least the 50% of what you burrow in upfront. Well, you don’t feel necessary to pay this much, but paying up to 20% of the total loan amount as an upfront can help you ease up your terms as the bank has seen some sign of good will.

  • Attorney

Almost have creditor have agents and customer service reps to deal with the negotiations. But you may see a lawyer very soon because there is a substantial amount you borrowed. The fact is, if you have taken out a loan, you should be prepared to see a lawyer and soon after you borrow money from someone.

  • Money Order

You need to make constant payment from time to time to keep the trouble at bay.  When you make payment to the lender, you better do it with a credit card, or a banking around.  They face your lender has burrowed all info about you. This helps him keep track in your movement, and know where to find you if you have played truant.

  • Paid in Full Status

Lenders try to settle less for a dollar so they can assure they are getting something back for their money.  This means you can pay less for a lump sum payment, but you can demand that the debt be shown as paid in full in your report. Fully paid or debt satisfied is the term you are looking for. Have it printed on the final documents and you are good to go.

  • Bring Your Lawyer

If your negotiations don’t help, then you have to live up to the end of the bargain. You need to prepare yourself if you see a lawsuit coming your way. You need to prepare yourself in advance to protect yourself.

Set Realistic Goals: You might want to back down and accept a repayment deal that favors you. It sounds prolific, but it will cost you dearly. Don’t agree to any debt settlement that you can’t afford.