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DIY Debt settlement: Your key to a successful debt repayment plan

Debt settlement has always been considered and promoted amongst the consumers as a suitable bankruptcy alternative. However, given the grim nature of it and the bad press that the debt settlement industry attracts, it was quite obvious for the people to try having their loans settled on their own.

Though it is a suitable alternative against professional debt help, yet most of the debtors relent for that because they have doubts in their capacity to successfully carry out the settlement process.

DIY Debt settlement is possible, only if you believe so.

There is a popular misconception that speaks about achieving better results through a debt settlement company than debtors doing the same all by themselves. A lot of do-it-yourself or DIY debt-settlement-based articles are nothing but bait-and-switch marketing gimmick.

The fact is that they start off with questions like ‘Can you settle your debts on your own?’ that goes on to provide a well-crafted answer that ends on a ‘yes-but’ note. In other words, these articles covertly promote the idea that if you use a professional debt negotiator, then you are more likely to get better results than if you do it on your own.

As far as rewiring your house is concerned, then a seasoned electrician would definitely be the most appropriate person for the job, unless you yourself is an experienced one. Nevertheless, when it comes down to have to your debts settled, then you must always keep one fact in mind and that is how much money will the settlement process save you.

In reality, success is always measured in terms of the money you save out of debt settlement. Hence, as per the statements above, you’ll have to take into account the exorbitant service fees levied by the debt relief companies, with around 25 percent being considered as the present industry standard. That said, you won’t have to pay a lot of extra charges like fees out of the amount of debts settled by the company on your behalf.

DIY Debt settlement is only about self-confidence and not skill.

According to the debt experts, a lot of debtors have a notion that they aren’t a skilled negotiator or they fear that they’ll get bullied by the debt collectors. To some extent, they are true and why not there is so much of bashing by the media who spew all sorts of horror stories of some malicious, abusive debt collectors.

Furthermore, dealing with the debt collectors is new to them and so, they are bound to react this way. However, you needn’t feel that way too because all you need to successfully have your debts settled is courage to speak and certain amount of unwavering self-confidence. Most of the debtors like you approach professional debt negotiators because they think that they lack the necessary skills to get on the phone and negotiate on their own.

Basically, the process of DIY settlement is for the most part a mechanical process. Practically, all leading creditors have their own collection systems in place so as to work on their delinquent accounts or ones that are getting close to being charged-off or even to recover their money on accounts that have well-passed the deadline of being charged-off. So, by the time, they are forced to write-off your credit account, it is at the moment, you’ll have a fair chance to bargain for a reduced repayment amount.

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Benjamin Beckwith
Benjamin Beckwith
Benjamin Beckwith is an authorised writer of Debt Consolidation Care community, and contributes regularly on various blogs and sites. He has prolific knowledge on the various financial issues that are affecting our nation.
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