TAKE THE MONEY AND RUN

The one benefit for consumers during this Financial Crisis, is the willingness of credit card companies to negotiate. The fear of losing you to bankruptcy is a clear and present danger for all creditors. The possibility of future legislation that would allow bankruptcy judges to modify mortgages on primary residences, could greatly increase the amount of bankruptcies in the US. The irony is, the most recent legislation passed by the congress regarding bankruptcy, tightened requirements, and favored the credit card companies greatly. The inclusion of an amendment to the bankruptcy laws to allow modifications on loans for primary residences was discussed but left out. This change is now evident with future administrations, as an effective way to lower foreclosures and keep people in their homes. No one seems to discuss however, the long term negative effects these folks will incur for ten years or more with a bankruptcy on their credit report.

THE THREAT OF BANKRUPTCY HAS INFLUENCED CREDITORS

The current threat of bankruptcy and future legislation that will promote bankruptcy for those looking to stay in their homes, has and will continue to, promote creditor leniency when negotiating with consumers. You are basically in the driver’s seat. However, simply calling and pleading financial hardship is not the way to go. You must educate yourself in the negotiation process and be disciplined in it’s implementation. The pay off for settling your own debt, can be substantial. You will avoid ten years of negative reporting and save hundreds, even thousands, in fees you would have paid to a debt settlement company.

WHY PAYING DEBT SETTLEMENT COMPANIES IS A WASTE

Why pay a debt settlement company for what you can do yourself. Creditors are ready, willing and able to negotiate directly with you. Why pay start up fees, monthly fees and settlement costs, which most debt settlement companies charge. Let them skim money off the top of someone else’s debt. You have a budget. You shouldn’t have to figure in payments to a third party as well. Paying money to your original debtor is enough. Dealing with these companies is not the way to go, but learning some of the methods they use, is.

HOW TO LEARN NEGOTIATION AND GET STARTED

There are numerous free articles and websites that cover different techniques.

Click Here to search "Do It Yourself Debt Settlement".

If you found this post, you would have found it on, what i believe, is the best  "Do It Yourself Debt Settlement" Guide out there.

Settledebtmyself.com, offers the best techniques including possible scenarios you may encounter. They also include Sample Letters you can use to contact your debtors which not many other companies offer. They include their guide in pdf, word and in an interactive flash presentation as a download. It is not very expensive for all the information you get.