The main difference between debt settlement negotiation done by a professional company and debt settlement negotiation done on your own is obviously the amount of money and time the process is going to take. Working with a debt settlement organization can take up to 3-5 years just to get the process started. When you completely cut out the middleman, doing it yourself usually only takes you a few days and the money is gone. These savings do not come without a price though.
Debt settlement negotiation takes place between you and the creditors. You can negotiate with the creditors yourself, but you really don't stand a chance against them. Professional companies have professionals that are experienced at dealing with different types of creditors. Get more info on how to write a debt settlement proposal letter. They know what works and what doesn't work when it comes to dealing with creditors that are not willing to agree to a counteroffer. You cannot expect them to deal with the likes of your creditor.
When you start the debt settlement negotiation process, you may be asked by the creditors to stop making payments to them. This does make sense, because when they refuse to do so, you will have no other choice. Stopping paying may result in a total payment of all your loans, but you have no choice if you want to settle the debt. If you ask the creditors to stop paying, they will often agree since it is better than nothing.
You will also be asked by the creditors to stop making all direct payments to them. Many people get nervous when this part of the debt settlement negotiation process starts, because they know that it means losing all of the money they are paying to them each month. Most of the time, though, creditors actually prefer it because they at least get some payment from the debt settlement negotiators instead.
The debt settlement negotiation companies will also ask you to stop paying some other creditors as well. Get more info on negotiating with debt collectors. This depends on how much money you owe to the others and how much of that money you can afford to pay to the debt settlement company. Some creditors are more important than others. If you have a mortgage, car loan, or student loan, for example, you will probably have to stop paying them so that you can focus on paying the one loan with the debt settlement company. If you have several credit cards and loans, though, you may be able to save by paying just one or two of them. Either way, the creditors are not obligated to do this.
Now that you know more about debt settlement negotiation, you need to find out how to use it in the most effective way. It is important to realize that the debt settlement negotiation process is not an easy task to handle. There are some inherent risks involved and you have to take all these things into consideration before you make any financial decisions. The best option is to seek professional help from a debt settlement company. Once they help you out, the rest is all up to you. Learn more from https://www.youtube.com/watch?v=CMbHQKs9a-Q.