Everyone can get into a lot of debt, and even though you have plans to pay it back, life doesn’t always go the way you want it to.
In a blink of an eye, you could be late with your debt payments, and your debtors could be calling you to settle your debts, but there is no way you could pay the debts you have without some negotiation to lower the interest rate or the capital you owe.
Debt settlement helps you to do this, and since you are under debt, you don’t have the budget to work with a company like you go to a debt settlement company and let them handle with. You need to do it yourself to make it as cheap as possible. Here is a small guide to negotiating your own debt settlement.
Table of Contents
Is Debt Settlement Your Best Choice?
Before you start thinking about how to negotiate and who to go to, and who to talk to, you need to establish several things in your head. The first thing is whether debt settlement is your best choice. There are other options like debt relief or even bankruptcy.
All of these things are bad for your credit score, and you need to choose the best from the worst. Determine your choices and make sure debt settlement is the best one that fits you.
Find Out What You Want
Once you establish that debt settlement is your best choice of action, it is now time to know what it is that you actually want with the debt settlement.
How much of the current debt you owe can you pay directly in cash, or what kind of an agreement do you want to make with your creditor if you don’t have the cash at hand to pay it off immediately?
Get In Touch
After you are sure of what you want, it is now time to call your lender and try to create a win-win situation. Mention to them your plans and what you can afford to pay for them.
Either you can pay a lump sum in one go allowing the lender to decrease the total capital you owe and close off all the debtors and create a new payment plan that is easier to pay.
Sign The Deal
The negotiation part is the longest and the hardest part of DIY debt settlement, but once you get your lender to agree on a deal, immediately sign a deal to make sure that it is legal and the lender can’t go back in their words.
The Verdict
As you can see, negotiating your debt settlement is fairly easy; you just need to know what you need, what you want, and what you can afford to pay.
If you know all the things you can do and whether you actually need debt settlement, the process gets easier, and if you can convince your lender to agree to the plan you have in mind, you will be able to sign a deal quickly.
Source
https://www.nerdwallet.com/article/finance/debt-settlement-negotiations
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