Category Archives: Debt Settlement

4 Tips to help you settle debt yourself

If you are having difficulty in making your minimum payments and are considering filing for bankruptcy then before doing that consider the option of debt settlement. This is a process in which the creditor agrees on a reduced amount of balance that ranges from 40% to 60% of the outstanding debt. This amount is to be paid all at once by you. You can settle the debt yourself or take help from debt settlement companies. If you do it yourself then you can save a lot of money, provided you do it the right way.

A few simple tips that you can follow when you are settling debt yourself are as follows.

1. Prepare to call your creditor: You have to call your creditor to make the necessary negotiations. Before you make the call make sure that you have all the required documents in front of you. These documents would include copies of your recent bills and also how much you will be able to pay in case a settlement is reached.

2. Make the call: Do not expect that your creditors will be very cordial with you. You may be asked to verify your personal information, do so. Tell them your financial situation and ask for their help. Make it very clear that paying the full outstanding balance will not be possible for you.

3. Ask for the supervisor: Talking to someone who refuses to help or who does not understand your situation is a horrible experience. So you must ask for the supervisor or department manager. This is because in most cases these individuals want to make reasonable payment arrangements or settlements.

4. Write a letter: Send a letter to the department manager that gives an outline of your payment plan. Specifically mention all the dates you will be making payments on and how much you will be paying.