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thewretched02 · Joined: 23 Jun 2009 Posts: 115 23.92 Dollars($)

Do it yourself debt settlement seems to be very popular at the moment, but how do you get results on par with the professionals?

Has anyone got some personal experiences to share on this, one way or the other?

smithsussane · Posted: Wed Oct 21, 2009 8:06 pm Post subject:

Hi thewretched!

Welcome to forums!

Well, I do not have personal experiences to share with you but there are certain steps which a debtor can follow and try to sell his debts himself rather than consulting a debt settlement agency.

As a first step to settle debts, the debtor should find out the amount of debts he/she owes. Once, that's done, it's important to prioritize the debts. Once you determine your debts, identify your income sources and prepare a monthly budget to know your expenses.

Start contacting your creditors in order to know whether or not they have sent your debts to collection agency (CA). If they have not sent the debts to collections, you can negotiate with them for payment plans. However, if they have sent the debts to collections, then you should contact the CA and ask for debt validation. If they cannot validate your debts, then you won't be liable to pay off the dues anymore.

Feel free to ask if you've further queries.

Sussane

raymond · Posted: Mon Oct 26, 2009 6:31 pm Post subject:

I'm reading a great book on that subject right now. It's called "How to Settle Your Debts - without committing financial suicide" by Norman H. Perlmutter (ISBN #978-0-9797483-0-1). He owed a Debt Collection company and has an insiders view that can be very helpful.

gmakerley · Posted: Mon Oct 26, 2009 7:15 pm Post subject:

i've worked with so many clients that had troubled credit records that i can probably share a little bit. first off, let me reiterate my stance on settlement companies: absolutely opposed to them - don't see any sense in throwing more good money after bad. self help is always going to be cheaper, and often more successful.

okay....a person ought to obtain a copy of the credit report, and go over it with someone who knows something about them (a loan officer, for example). a person needs to recognize that the contact information for every creditor is shown on the credit report.

the creditors need to be contacted to see if there are settlements that can be made, or if they need payment in full. act quickly and with intent, and these things can be knocked out faster than expected.

do the smallest first and work your way up the ladder to the larger balance accounts. in this way, you've encouraged yourself by knowing that you can, indeed, pay off those things that have been sitting around for lo these many years.

propertyinfo · Joined: 04 Oct 2009 Posts: 14 0.36 Dollars($)

Found this article online on this subject:

"Do It yourself Debt Settlement Tips

Not a bad beginers guide?

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raymond · Posted: Sun Nov 08, 2009 4:01 pm Post subject:

Who has the time to do learn and do all that? It takes a lot of effort to do it properly and receive maximum benefit, and how many of us are truly capable? Debtors can do their own bankruptcies with the assistance of an Attorney too, but I feel it's always best to hire a Professional who's skilled in the discipline you need help with.

That list is a full time job. Many Debt Negotiators are career Professionals and very experienced at what they do, and if I needed assistance in that area, I'd hire them instead of doing it myself.

>>Not a bad beginers guide?

Yes, it is a good beginners guide.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

I think that's the point of the article really - there are people that do this for a living, and if you want to get the same sort of results you need to be prepared to put in a similar amount of work.

If you'd prefer to go the DIY route - which can also work - you need to have realistic expectations about your results

gmakerley · Posted: Tue Nov 10, 2009 11:11 am Post subject:

i have been and continue to be an advocate of do-it-yourself, albeit with the assistance of others who can cajole, encourage, advise and simply be there with someone who is struggling to pay off debts. there are plentiful non-profit agencies who can assist in this kind of venture, and there are plentiful groups of people and individuals who are willing to lend time to assist with no compensation. ideas abound, and it doesn't take the full-time efforts of a for-profit entity to accomplish what, for many, would seem to be an insurmountable task.

raymond · Posted: Tue Nov 10, 2009 12:45 pm Post subject:

>>there are plentiful non-profit agencies who can assist in this kind of venture

Just because they're non-profit doesn't mean they have their own financial interests in mind.

When it gets really bad for folks in hard core debt situations, their options are bankruptcy, debt settlement or Consumer Credit Counseling Services (CCCS).

If they visit the Bankruptcy Attorney first, a bankruptcy program is going to work best for the debtor because it quickly eliminates all unsecured debt and enables them to get a fresh start the fastest. And it'll be easier for them to buy a home sooner then the alternatives because their Debt-to-Income ratio will be so much better - faster.

If they visit CCCS first, their program makes the most sense because they'll eliminate the interest and penalty fees on all the debtors credit cards, and their FICO scores won't be impacted as much as the other two solutions. I wonder if they tell the debtors they're a non-profit that's owned by the Credit Card companies, and the program takes the longest amount of time to complete. And it really doesn't matter if their FICO score isn't dinged further, because their scores were so severely damaged prior to entering the program.

Talk to a Debt Settlement company first and they'll learn their program gets them out of debt quicker then the CCCS program, and doesn't leave the hugh negative impact as bankruptcy.

To date, I haven't found a true for-profit or non-profit that has the debtors best interests at heart. At the end of the day, they all have to make a living.

gmakerley · Posted: Wed Nov 11, 2009 5:49 am Post subject:

wow, raymond...i'm surprised to hear that last comment about a debtor's best interest. frankly, in my dealings with cccs over the years, i have to say i've found their attitude to be different than what you've described. but of course, we all have differing experiences. i am gratified, though, to see you invoke their name as an agency that's worth doing business with.

i've seen their work in my career as a creditor as well as while originating and underwriting, and i've seen plenty of wonderful accomplishments.

thanks again...i'm glad you've chosen to add your voice here.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

How is it that credit counselling services can just vanish the interest etc? especially if the work for the card companies - isn't this their bread and butter?

gmakerley · Posted: Wed Nov 18, 2009 8:34 am Post subject:

rise, it is the credit card companies that waive interest. a counseling service merely works with the borrower in line with the creditor, arranges a deal by which the consumer makes payments on the debt. the waiving of interest is something that a creditor might do once they realize that they'll begin getting payments. the relationship between counseling service and creditor is obviously critical to this type of arrangement.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

Wouldn't it be simpler just to negotiate this directly with the credit card company ratheer than set up a "puppet" organisation to act as an intermediary pretending to be impartial?

Perhaps I'm just being cynical but if it's the card company that waives the debt, and authourises the counseling service to waive it's debts - the counselling service really serves no useful purpose other than acting as a buffer between the two actual parties. They have no power/add no actual value in and of themselves - merely carry out the wishes of the card company.

All seems a bit "smoke and mirrors" to me.

gmakerley · Posted: Wed Nov 18, 2009 8:46 pm Post subject:

but a credit counseling agency will work with a client, educate the client, and with the power that they wield because they know what they're doing, negotiate with the creditor. they are not carrying out the wishes of the credit card company in the least.

yes, a borrower can work out his or her own issues - unfortunately, borrowers are famous for not doing so - particularly before it reaches a problem stage. debt management consultants are trained to work in this area, you and i are not.

Posted: Thu Nov 19, 2009 5:42 pm Post subject:

Sorry - perhaps I'm not understanding this correctly.

I thought the counselling agency was owned by the credit card campanies, as per raymonds post?

If they are owned by the card companies, why would they work against their owners best interests? I guess I just cant see why one organisation wwhich is owned by another one would truely "negotiate" with it's parent on someone elses behalf?

Surely their guidelines are set down by their owners (the card companies) and they follow them? Don't get me wrong, i'm sure they offer a useful service in terms of education, but I don't really see how they can claim to be impartial, or working for the debtor, when their salaries are ultimately being paid for by the card companies?

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