Wednesday, March 30, 2011

Fast Debt Relief - Should I Negotiate Myself Or Seek Outside Help?

For those looking for fast debt relief one question that often comes up is whether or not to negotiate their own debts. Debt negotiation is an option in most states, and if it is available as an option to you then you also have the option of forming your own debt settlement plan. However, just because you can do-it-yourself, doesn't necessarily mean that you should.

Just for clarity, let's first talk about what debt settlement is. A debt settlement plan, also referred to as credit counseling or debt negotiation, is a process in which the amount due on unsecured debt is negotiated, and in turn total balances owing are reduced. As an option it is much better than bankruptcy, and it generally is over much faster than a consolidation loan would be.

Where the problem comes is when people decide to save money by negotiating their own debts.

Negotiating Your Own Debt Relief Program

When it comes to choosing whether or not to negotiate your own debts, it really comes down to the pros and the cons. The only real benefit to negotiating yourself is that you save a little money on fees. Debt relief companies have to make a profit somehow, and there income comes in the form of fees on your debt settlement (usually a small percentage of the total balances due).

Someone looking at this may look at these fees, and then think that they'd be much better off negotiating themselves and saving the money. Unfortunately when you begin to look at the downside to performing your own debt settlement, those savings usually end up not meaning anything at all.

Since you aren't a debt counselor it isn't very likely that you'll be able to negotiate the balances due on your account to the same level that a professional would be able to. When you factor this in, the fees that you saved aren't really a savings at all. In fact, with your poor negotiating skills you're most likely paying more anyway.

Fast Debt Relief - Seek a Professional Debt Counselor

A much better solution is to seek the help of a professional debt counselor. There are companies that specialize in debt settlement, and using one will ensure that you get a better settlement in the long run.


1. A Debt Counselor is Experienced - A professional debt counselor will be better able to negotiate reduced amounts.

2. Negotiating Debt is Stressful - If you've never worked with a creditor to work out a smaller balance, then you should know that the process itself will be stressful.

3. You Aren't as Familiar with Debt Law - A debt counselor knows the laws pertaining to debt and will be better able to respond when a creditor threatens to sue. Most of us don't know how to respond well in these types of situations.

What it really comes down to is how quickly you want to be out of debt, and how much you need to save to be able to get some relief from the burden you are currently experiencing. A professional debt counselor will be better able to negotiate a smaller balance due, and in the long run will provide you with fast debt relief and save you more!

Jenna Harper runs the site Debt Relief Programs Reviewed to help those who struggle with debt. If you are currently struggling with a large debt load, and are having trouble keeping up, you should take the time to look at the information on Debt Relief on Jenna's debt blog. On her site you'll also find review of the top three debt relief programs available today.

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