DIY VS. Debt Settling Service – Your Approach to Settling Debt

If you can’t keep up with your payments and your debt is building up, you will soon need to do something about it.

Debt settling is usually the best way to go since you can settle your debt while paying as little as 50% of the original amount that you owe. Sounds good, right?

But there is one important decision that you should make:

DIY Approach to Settling debt VS. a Debt Settling Service

It could be a hard choice, whether to contact a debt settling company or to do the legwork and contact your creditors to settle your debt yourself. Although many advisors recommend on settling debt in the DIY approach, this definitely doesn’t suit everyone.

DIY Approach to Settling Debt
Advantages

  • You save any fees that you a debt settling company will charge you
  • You can contact your creditors and negotiate a debt settling plan while playing the “I am doing it myself, work with me” card

Disadvantages

  • You need to do all the negotiation process yourself (and prepare accordingly)
  • You need to be far behind on your monthly payments in order to be offered a debt settlement by your creditor

Choosing a Debt Settling Service


DebtHelp101 Banner 3Advantages

  • A professional negotiator is negotiating on your behalf
  • Less damage to your credit score
  • You get a plan to settle your entire debt on 1-5 years
  • You no longer need to answer creditors calls yourself

Disadvantages

  • You need to pay debt settling fees
  • You have a higher risk of getting sued by your creditors

When you decide to go with a debt settling service, you should carefully review what you are being offered. Ask questions; make sure you understand how their debt settling program works. If you don’t get answers or you don’t like the answers you hear, keep looking!

Debt Settling Services

Most debt settling service will offer you a free consultation – use it.
It is best to contact more than one debt settling service so you can compare what you are being offered.
Debt Help 101 and Debt Headquarters are 2 companies that offer such a free initial consultation.