We often get questions from people working to get better credit scores about debt negotiation, debt settlement companies, and credit counseling services.  The questions range from "How will this affect my credit scores?" to "Do you know a good company to use for this?"

Because everyone's financial situation is different and unique to them, there is no one-size-fits-all answer.  The answer we usually have is actually a question: "What have you already done for yourself"?

Yes, you can do your own debt negotiation and settlements.  Why would you want to?  Well, most of these types of companies charge fees to consumers who use them.  Some charge money up front to get started, others collect a portion of the monthly fee sent to them, and others charge a percentage of the total amount of debt reduction.  If you can save hundreds, if not thousands, of dollars by doing this yourself, you may  actually have more money to apply toward your debt.

Our client Joe had $50,000 in debt, mostly in credit cards.  His accounts were all with the original companies, not collection agencies.  He did some research, organized his records, scrutinized his financial situation to know exactly what he could pay on each account, and started calling.  Over the past few months he has paid off his accounts, in full, for $13,000.  Yes, he has saved over $37,000 by developing his own debt settlement plan!  Way to go, Joe!

His research included some articles by Credit Info Center.  This one has information for accounts that are with the original company.  Another one has information for accounts that have been sent to collections and you can read it here.  Be sure to read all parts of each article, including the associated links.  An important aspect of debt negotiation is to also negotiate for your credit rating.  And of course, get everything in writing, especially the dollar amounts agreed to and how it will then be reported to or removed from your credit file.

As we all work toward improving our finances during these challenging times, it makes sense to go back to basics, educate ourselves and learn some ways to do it yourself.  Doing your own debt negotiation can be a win-win for both your wallet and your credit rating.

Please let us know your results after you do this.  Happy Saving!

NOTE: Complete Credit Services is not in any way affiliated with Credit Info Center, we do not recommend or endorse any of their products, and this information is presented for reference only.