Should I Do My Own Debt Setttlement ?

Article Written By: spruceree

The credit card companies create separate departments in order to handle their problem accounts in the most efficient manner. They typically have some form of collection, settlement and late payment departments, even though they may be known by a different name. Consumers vary in their finances, priorities and tolerance to risk, and so do the credit card companies.

Because of these differences, the policies and procedures instituted in each department within each company can vary significantly from one another. In the face of the uncertainty this creates, the prospect of trying to negotiate with the credit card companies by yourself can prove to be a difficult and time-consuming process.

The debt settlement process will require persistence, patience, and thorough preparation. Before starting, it would be advantageous to be aware of your consumer rights and study the Fair Debt Collection Practices, as many creditors may try to use tactics to intimidate you.

A strategy that gets you what you think is a good result with one company may end up requiring that you appear in court when used in exactly the same way with a different company. Negotiating successfully requires a precise timeline too, so a strategy that had poor results might have worked if it had been used after some more time had passed.

Assuming that you had success in getting the lender to negotiate with you, another uncertainty is in trying to determine how good the negotiation result you get may actually be. Do you know what someone who does this every day for a living (and deals with the same lender on a regular basis) would have negotiated in the same scenario?

A further consideration is that the credit card company you are trying to negotiate with may have millions of accounts, and you represent only one account to them. In contrast, a debt settlement company may be negotiating on millions of dollars of debt with that same credit card company.

To whom do you think they are more likely to give higher priority? Do you think that they would be willing to devote the same amount of time and patience in trying to resolve your singular account?

If you have decided that you re going to try the negotiation process by yourself, you would be well-advised to collect as much information as possible about each of your creditor s guidelines and processes.

The better informed you are about what to expect from a given company, the better your chances are to achieve some worthwhile results.

About the Author

Jackson Roberts is a debt counselor for Right Start LLC who regularly contributes articles on the subject to assist those in need of credit card debt relief and credit debt settlement.

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This Article Has Been Published on Tue, 8 Jun 2010 and Read 231 Times

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