Last week we told you about our client who saved over $37,000 by negotiating his own debt settlement with his creditors in this article.  This is a fantastic way to help your finances and a great alternative to debt settlement companies that are prevalent right now as more people feel the squeeze of too much debt.  You can save hundreds or thousands of dollars in fees that would be paid to the debt settlement company, and you decide exactly which account you are paying on and when – giving you more control of your own finances.

A few follow up points from that article:

Be sure to get everything in writing.
This includes the negotiated amount and how it will be reported on your credit report before you send any money to the company.
Keep all records, statements and copies of cancelled checks even after it's paid off.  We've seen items pop back up on credit reports a few years later and having the paper trail as proof for yourself is invaluable.

Stay out of debt.
Once you've paid everything off, don't charge accounts back up again.  If you do, the likelihood of another successful debt negotiation is very slim.  Stay debt free and start saving for your future.

Be aware of tax consequences.
The Internal Revenue Service (IRS) says that if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income.  A debt includes any indebtedness for which you are liable or which attaches to property you hold.