3 Risks of Do It Yourself Debt Settlement

You’ve heard the ads all over the radio and TV pushing debt settlement programs, portraying them as “secret programs” that the credit card companies don’t want you to know about.  The truth is that what they are talking about is simply the fact that creditors, in some cases, will actually forgive a portion of your debt if you are way behind on your payments.

So the question is: Do you really need someone to negotiate for you? Can you really negotiate a settlement by yourself?  Well, it depends.  Some of these companies are legit, a lot are not, and you can possibly be in over your very quickly if you start demanding forgiveness of debt from your creditor.

There’s several situations in which you can find yourself, but I’ve tried to boil them down into 3 groups of Do It Yourself Debt Settlement Risks:

1. You will be Manipulated and Intimidated

We all know that debt collectors will try anything to extract money from a non-paying debtor.  The extent to which they will go, may surprise you, though.

They will call your relatives, including brothers, sisters and parents, anyone with the same last name in your area, pretending to have the wrong number and ask the person if they know you.  They usually ask that person to “send you a message” that they are looking for you.

Threats work  too, some are indirect like calling on your relatives, but some are more direct, like threatening to take your house away and repossess your property.  Of course they can’t do either, but the goal is to intimidate you and make you feel like you need to do what the debt collector wants.

Although several of their tactics like these are considered illegal, debt collectors will sometimes do almost anything to get you to send in a payment.  And sometimes you’ll fall for it.

2. If You  Are Not Patient, You will Fail

Debt collectors and credit card companies of course want their money as soon as possible, and if you give into their demands too early, you’ll end up not getting a good settlement, or may not get one at all.

No matter how you plead, you’re not going to be forgiven a large portion of your debt by just calling them and asking for it.  Even 30-60 days after you’ve missed a payment. It will take substantial time and missed payments to prove to them that you’re in trouble and serious about reaching a settlement.

3. You need to be  a Ninja Negotiator

Do you know when the right time is to ask for a settlement from a credit card company? What if you pass on their first offer because it’s not enough, how long should you wait for a second offer?  What if there isn’t a second offer? And they sue you?  What then?

Each credit card company has their own rules for accepting a settlement with a non-paying customer. So you’ll need to know the process and be able to recognize the signal that’s it the right time to agree on a settlement before it’s too late. These are skills of a professional negotiator.

What are My Options?

Settling your debt with your credit card company is not impossible, but it can be difficult.  Zipdebt is a great resource to help you get you on your way to a great settlement.  They offer a free 32-page report describing the process and offer two options for do it yourself debt negotiation: An in-depth guide to hold your hand along the way, and an optional coaching process, where you’ll get help from a professional.  If you’d like to pursue this option, definitely check them out.

The other option is to hire a reliable and competent debt settlement company to handle everything for you.  That way you won’t have to worry about the negotiating process and most harassing calls will stop since they will take all the calls for you.  I recommend this company based on their track record of satisfied customers and many successful settlements.  When you hire a debt settlement company, you’ll get a lot of piece of mind and they’ll do everything for you.