Can I Do This On My Own?

Do I really need to hire someone to try and negotiate my or can I just do this on my own? Absolutely, you can do it on your own. Just like when selling your home the question is: do I need a real estate agent to sell my house? No, but consider this, if you do not have the time, expertise, and the knowledge, the cost of making mistakes can be enormous. That is why it is a good idea to retain the services of an experienced professional that knows what they are doing.

Here are some tips if you do want to attempt Debt Settlement on your own,

What if I don’t respond and temporarily do nothing?

Many times this works well, the old saying "no news is good news" can apply, but can also backfire and you can miss a great opportunity for a very favorable settlement. Knowing when to hold back and do nothing is a major factor in dealing with collectors.

You must understand what a good settlement offer is and what is not.

For example, one creditor may never budge for less than 50% so accepting that offer would be wise. But on the other hand there are creditors who will accept 20-35%. Having the knowledge of how they operate is a key ingredient to know when to hold out and when to settle, this is essential to achieving the best possible results.

Do not expect the creditors and collection agencies to just roll over and play dead, while reducing your debt by thousands, if not tens of thousands of dollars.

Understand, this process can take several months so you have to be strong and not fall for their tactics to intimidate you into prematurely accepting a bad deal.

The old saying “It’s not what you know, but who you know” is very important when it comes to negotiating your debt.

Avoiding uncooperative people and actually speaking to the right person makes the difference between getting a settlement or not.

Different creditors and collectors will require different negotiating strategies.

What you find may work with one company could have a totally reverse affect when tried with another company such as triggering a law suit. Typically each company has its own way of doing business.

Creditors will routinely threaten to sue.

In the vast majority of cases this is just a bluff, but it is a real possibility. It is essential to know the past performance of the company threatening litigation; many companies send the exact same threatening letter to everyone and rarely ever sue. Only experience with the companies and tactics can help you to determine if the threat of a lawsuit is legitimate or not.

What if I receive a letter or call for a law firm does that mean I’m going to be sued.

One of the main reasons creditors and collection agencies use law firms to collect debts is because the official appearance of a law firm’s letterhead. This is usually enough to get most people to react and pay immediately. If the law firm is not registered to practice law in your State they cannot represent a client in court where they are not licensed, the odds of that firm suing diminish. Dealing with a law firm collections company requires confidence and the correct approach to receive a favorable settlement.

What is the best time to settle with the original creditor or let it go to a collection agency?

This question is asked the most and many times you are much better off actually dealing with the collection agencies; however there are times when dealing with the original creditor is much more beneficial.

Are judgments and liens negotiable?

Yes, but the results may not be as favorable. Caution must be used when speaking to the creditor, having the knowledge of the legal system in your county is necessary, as not to put yourself in a worse situation. Also you will need to know how to properly file the paperwork in your courthouse once a settlement has been reached.

What happens when my debt continues to be sold to more than one collection agency?

Now more than ever you will see that a debt is sold from one collections agency to another. Which can mean the original creditor is completely out of the picture, a potential problem my come up when the collections company is bought out by another collections agency, which happens very often. The new company does not have to honor your past agreement and can demand more. It becomes essential to make sure you get the right settlement paperwork, so that you aren’t liable for paying out on a debt that you already settled with another company.