Debt Settlement - Do it Yourself Or Employ a Company? Here Are the Answers
Why is it advisable to employ a settlement company? There are many service providers offering their expertise in handling debt consolidation transaction as well.
However, you can attempt to consolidate your debts on your own.
You can skip employing the professional and try to get the job done using your personal skills.
On the other hand, it is not advisable to try the same with a debt settlement company.
There are specific reasons for such an approach.
The first and the most important factor is that settlement will help you escape bankruptcy.
On the other hand, consolidation, rarely if ever, if used as a solution for bankruptcy.
It is more suited to solve the administrative and logistical problem of excessive unsecured debt or too many credit cards.
Secondly, the skill and expertise of the consolidation expert enters the picture only when it comes to negotiating with the creditors for a reduction in the rate.
You can rightly identify the cheapest and the most inexpensive loan in the market on your own.
Once you have got the cheapest and the lowest interest charging loan, you just have to get in touch with your lenders, point out that you have such amount available as repayment and ask them what they think about the deal.
In today's recessionary times, chances are high that lenders will be enthusiastic about any borrower who offers to repay bulk of the debt in lump sum.
You may lose one of two percent discount because of your poor negotiation skills.
However, you can try to overcome that by being tough and taking a direct approach.
If the lender does not give you want, you can simply walk out and say that you are prepared to make monthly repayments.
If you do that, chances are high that lenders will take that risk just to get that lump sum payment.
Hence, there is no apparent reason to employ the services of the consolidation company unless you are dealing with a large number of credit cards and unsecured lenders.
That may make it impossible to negotiate deals on your own.
On the other hand, convincing your lender to waive more than sixty percent of the amount owed is not an easy task.
Chances are high that the lender will refuse such an approach and may even consider pushing you towards bankruptcy.
In case of consolidation loan, you are simply facing problems because of the large number of creditors.
In case of settlement, you are finding it difficult to make the payments on time.
This is the fundamental difference between these two services and that is why it is best to get a settlement company to find you the best deal.
However, you can attempt to consolidate your debts on your own.
You can skip employing the professional and try to get the job done using your personal skills.
On the other hand, it is not advisable to try the same with a debt settlement company.
There are specific reasons for such an approach.
The first and the most important factor is that settlement will help you escape bankruptcy.
On the other hand, consolidation, rarely if ever, if used as a solution for bankruptcy.
It is more suited to solve the administrative and logistical problem of excessive unsecured debt or too many credit cards.
Secondly, the skill and expertise of the consolidation expert enters the picture only when it comes to negotiating with the creditors for a reduction in the rate.
You can rightly identify the cheapest and the most inexpensive loan in the market on your own.
Once you have got the cheapest and the lowest interest charging loan, you just have to get in touch with your lenders, point out that you have such amount available as repayment and ask them what they think about the deal.
In today's recessionary times, chances are high that lenders will be enthusiastic about any borrower who offers to repay bulk of the debt in lump sum.
You may lose one of two percent discount because of your poor negotiation skills.
However, you can try to overcome that by being tough and taking a direct approach.
If the lender does not give you want, you can simply walk out and say that you are prepared to make monthly repayments.
If you do that, chances are high that lenders will take that risk just to get that lump sum payment.
Hence, there is no apparent reason to employ the services of the consolidation company unless you are dealing with a large number of credit cards and unsecured lenders.
That may make it impossible to negotiate deals on your own.
On the other hand, convincing your lender to waive more than sixty percent of the amount owed is not an easy task.
Chances are high that the lender will refuse such an approach and may even consider pushing you towards bankruptcy.
In case of consolidation loan, you are simply facing problems because of the large number of creditors.
In case of settlement, you are finding it difficult to make the payments on time.
This is the fundamental difference between these two services and that is why it is best to get a settlement company to find you the best deal.
