Debt Settlement Companies vs DIY

Well, the decision entirely depends on you. Some would find it convenient to use a settlement company whereas some would prefer to do it themselves.

Go through the do it yourself section of this site. It'd give you the idea how to initiate the negotiation for settlement.

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Hi, with only $8500 and 4 cards you could probably do it yourself without pulling out your hair! It is like changing your own oil and spark plugs or fixing your own plumbing or wiring - you will save money but get your hands a bit dirty in the process!!!

Some people don't mind but others would rather get on with their lives and leave it to people trained to do it. It is a personal choice.

You don't have an overwhelming number of cards to deal with or a terrible amount of debt. If you have about 30% to 50% of what you owe so you probably could do it yourself.

Some cards settle better with the original creditors right before they are written off and some do better at collection agencies. Sometimes it is the luck of the draw with collection agencies whether your cards will hit a decent one or a really tough one.

The best advice I could give you (I have been doing this for 10 years) is to try and get a low settlement with the original creditor right before it is written off. If your hardship is good many will give you a settlement of 30% or lower. If they won't budge then you can take your chances with the collection agency. Explain your hardship (not how you got into debt but why you are over your head now and unlikely to get out of it soon). Find a person willing to help you - don't waste your time with the unsympathetic - just politely end the call and call back for someone else. Never be rude or angry - just tell a brief version of your story and offer an amount of money you can afford. Try about 20% to 25% at first but round the amount and never talk percentages - just an amount. It doesn't have to happen on the first call. Get the terms in writing BEFORE you give them the settlement money and read it for the correct account #, settlement amount, correct date, etc., remembering this is the only proof you will have that the money was a settlement and not just a payment toward the total balance.

This will help you and with persistance you should do well - but these are the broad strokes. A good debt negotiation company (not debt settlement - who may have predetermined bulk settlement rates with the creditors and not negotiate at all) understands the variables with each creditor to get the lowest settlements. If a person has more cards and/or owes more money than you do, they may be better off letting a professional debt negotiation firm deal with all of the creditors and the larger debt.

The more rapidly you settle your debt the less chance it will go to a legal suit.

Good luck and live life debt free!

I would do it yourself. I have already received settlement offers from Chase and Citi without doing anything. I have seen on here many people getting settlements around 30% with those banks. You have something they want and it does not pay for them to go to court. Wait until the end of the month and offer them 20% and see what they say. If your debt is $5000 say $1000, don't say 20%. Tell them you can borrow that amount from a family member if that would satisfy this debt. Do not send money until you received a written agreement. If they say no you might be able to settle somewhere in the middle, time is on your side.

Thank you for all of your responses-I very much appreciate any/all insight. As far as the cards with CA's, I have read to only deal with them in writing, is that true? One of the cards is with a pretty nasty CA and I would rather just pay them a lump sum and be done with them. In 2 months I could prob save 25-50% of the total amount due for all cards so should I wait until I have the funds to start to negotiate? Thanks again for all the input!

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