When you are in debt, you might be wondering about do it yourself debt settlement tactics to pursue. This is a viable option, and one that you can purse to succession. However, it must be noted that in the event you find a do it yourself debt settlement plan to be too demanding or too overwhelming, you can consult with debt financial advisors who can assist you with your unique debt issue.
To start with, you might’ve been making debt payments to your creditors to try and lower your balances; if your balance is low, then continue to pay it off. On the other hand, if your balance is large and you’ve been making the minimum monthly payment, you can go ahead and purposefully withhold payment. When you’re making the minimum monthly payment on a large collections balance, the fact of the matter is that you’re most likely only making dents in the interest of the actual principal balance.
While you’re missing your payments to the creditors, you don’t want to go spend this money. That would only ruin your do it yourself debt settlement plan. A good way to make a payment arrangement with your creditors is to put aside what you’d normally pay to the creditors in a savings account. The plus of this is that it will accumulate some interest, depending on the savings account balance. If you’re not able to come up with the full payment of what you’d normally pay, you can still put aside as much as you are able to.
The next step is to formulate a plan of action geared towards paying the creditor balances off. It’s important to not give in to the demands of the creditors for the full balance they state you owe. The next step is to start using the word bankruptcy when speaking to them. More to the point, make it sound as if you are on the brink of a financial crisis and bankruptcy is the only option you have left. Even though this might not be the truth at the time, it’s important to make the creditors think as much.
Next, talk about setting up a payment arrangement with the collection agency. If the collection agency settles for a payment arrangement, they will allow you to make said payments on specific dates. Should you fail to uphold your payments in the payment arrangement, the collection agency can resume collection attempts for the original amount or payments. Furthermore, if you owe a certain amount, depending on the law and also the statute of limitations on your owed debt, the collection agency may seek to sue you in court for the debts owed. However, they do not always choose this option because of the costs and the hassle of collecting the money award from you if garnishments are not an option.
Your best option is to make a wager with the collection agencies to pay a portion of your debt in monthly increments as described above. However, make sure that you offer no more than 25 percent of the debt for your monthly minimum payments; it’s important you settle on a number you can afford. In most case scenarios, 25 percent of the debt for monthly payments seems to work for majority of people; however, in some cases, depending on the debt amount, a debt counselor might need to be sought after for professional debt advice. With a payment agreement for the collection agencies, you can make sure to make your payments to each agency out of your settlement fund, and then continue to make the payments until made in full. Once the payments have been made, you can request to have the delinquent reports removed from your credit. Again, if you need debt settlement advice, seek the services of a debt counselor to help you with a payment arrangement plan for your creditors. Congratulations, you’ve just avoided bankruptcy, and now can start with a fresh financial slate.