Articles => Debt Consolidation
3 Steps to settle your debts all by yourself
Published on Sunday, 13th of March 2011 by Nancy Smith. This article has previously been viewed 170 times and was last read on Saturday, 19th of May 2012 at 14:35:32.
When you are suffering from debt related problems, then you can consider choosing from a wide range of debt solutions. However, in case you are not even being able to make the minimum payments you should consider a debt solution called debt settlement. It is a process in which your creditor settles for 40 % to 70% of your debts in exchange for a one time payment. Thus, the creditor is willing to accept less than the actual amount he or she owes.
You are free to settle your debts all by yourself or by taking the help of a debt settlement company. You should understand that taking the help of a debt settlement company would mean that you have to pay them a certain amount as fee. If you settle debts yourself, then you will save on this extra amount.
However, you should be aware of the proper way in which you are to settle your debts so that you will be able to settle your debts well. Some of the steps that you may follow in order to settle your debts successfully are as follows:
- Make preparations to negotiate:
You are the one who will be responsible for settling your debts. Thus, it is essential that you be completely prepared when it comes to talking to your creditors. You must keep all the documents in front of you before you make the call. The documents that you will be requiring are copies of your recent bills. Another aspect that you must decide in advance is the amount that you will be paying in case a settlement is agreed on.
- Call your creditors:
The next thing to do is to make a call to your creditors in order to negotiate. You are to speak very politely and make them aware of the situation that you are in. Inform them that it is not possible for you to make the payments in full as your financial position is not good. Request them to help you out and you will be surprised to see that mostly all lenders will help you out. This is because they risk not getting paid at all in case you declare bankruptcy.
- Send a letter:
You must write a letter addressed to the department manager. The purpose of the letter is to provide your creditors with your repayment plan and also to help them understand how and when you will be making the payments. You are to give them the full details along with the specific dates in which you will be making payments.
This is how you should precede when settling your debts all by yourself. If you follow these steps, then you will surely get success in the process of settlement.
