You Had Big Dreams

When you entered adulthood with that first job and the prospect of a bright future, you had every intention of paying your bills on time and earning enough to save and invest for the great things of life. Now you find yourself swimming in debt, late on payments, and wondering how it all went so wrong. Whether the causes were unfortunate circumstances (loss of job, illness or injury, etc.) or simply the failure to be responsible about spending, you are now in so deep, you cannot see a way out. Your dreams should never be shattered by overwhelming debt, for there is a solution. If you choose debt settlement now, you can get back on track and resurrect those dreams.

The Options for Debt Settlement

You can either approach debt settlement on your own, or you can employ the services of a settlement professional to do the work for you. If you do not understand what is involved, you need to do some homework, although some basic information is as follows:

1. The goal of settlement is to obtain lower interest rates, lower payments and a lower total debt amount from each creditor you owe. You cannot negotiate for these things unless you are at least 60 days behind in payments, and the negotiations will take time, a strong will, and a commitment to persistence.
2. You need to put yourself in the greatest position of power. To do this you must make your creditors believe that you are in dire straits and cannot determine when or if you will be able to get your debt current.
3. The most successful negotiators have been able to reduce total debt to 50% of the original amount, as well as secure reductions in interest rates and monthly payments. This should serve as your guide as you approach the process.
4. If the debt is in the hands of a collection firm, you need to learn whether the debt has been transferred or sold to the collector outright. If the collector has purchased your debt, which is quite common now, he did so for pennies on the dollar, and you can negotiate for far less than 50%. Start at 35.

The important point is this: If you are a skilled negotiator, have the time to spend in negotiations, both verbal and in writing with either creditors or collectors, and have the persistence necessary, go for it. If, however, you are missing any of these, do yourself a favor and employ a settlement professional. These pros do this for a living, have established relationships with most creditors, and have developed the skills necessary to get you the best deal possible. Again, do the leg work and carefully research the background and reputation of any settlement professional you are considering, and do not sign a contract until you are fully aware of all fees involved. The other benefit of using a professional is that they will total up one payment for you to make each month and distribute the correct portions to each creditor, keeping their fee portion. This is pretty painless and allows you to move on to more important matters, like pursuing those dreams you have now resurrected.