The dilemma of whether to settle credit card debt yourself will depend on how much experience as well as expertise you may have dealing with lenders, debt collectors, credit bureaus as well as the laws and regulations that relate to the above.
In addition, it will depend the amount of time you might have considering that there's a lot of forms involved. Once you read the remaining article, you have to choose if you are going to settle credit card debt yourself. If you try it yourself, you'll save a few thousand dollars.
What Am I Getting Myself Into?
By negotiating your debts yourself, you need to take the following into consideration:
1. The standard timeframe of a debt resolution plan is around 3 years. Be ready to do a a lot of paperwork. Also, because credit repair, attorney consultation and debt negotiation go hand-in-hand, you will see lots of added documents and communications with creditors, debt collectors, lawyers (if a lawsuit is filed by the debt collectors) and also the credit bureaus.
2. You will have to develop a strategic plan. Understanding when, with whom, and how much to negotiate for is key. Every creditor is different. A few might behave aggressively, while some might be more patient about the collection of a debt.
3. Possessing exceptional negotiating abilities is vital. Your creditors have plenty of expertise settling credit card debts. You must as well.
4. Each lender settles for a different amount. Quite a few creditors have reputations for compromising for favorable amounts to you, and a few lenders don't budge beyond a nominal amount. Only knowledge when it comes to negotiating settlements will increase your savings.
5. You will need to be aware of the legal aspects with regards to credit and debt settlement. If you do not, the lenders can use that to their benefit. You must be informed about the Fair Debt Collection Practices Act (FDCPA) along with the Fair Credit Reporting Act (FCRA).
6. You have to be familiar with the numerous tricks which several debt collectors use to their advantage. For example, they will often mandate that you pay the negotiation amount using a check. Afterwards, when you analyze your credit report, you'll see that the account still displays an unpaid balance which is in default. Therefore you call the credit card company, only to be told that the sum which you paid was applied to the balance of your debt - not as a settlement that was "paid in full as agreed!"
Whether or not you choose to settle credit card debt yourself, or even hire a specialist, it's up to you. The key point is that you get rid of debt!