You Can Settle Your Own Debts... But Should You?

You Can Settle Your Own Debts..

You Can Settle Your Own Debts... But Should You?

Most people have heard the incredible success stories of consumers who have drastically reduced their debt via debt settlement programs. But for every success story, they've also heard a horror story of the fraud and deceit that runs rampant throughout the debt relief industry.What most people don't know, however, is that you do not need a debt relief company or legal representative to successfully negotiate a debt settlement with your creditors. So the question begging to be answered is, why not just take out the middle man?

Taking on your creditors in negotiation is definitely an appealing idea. If you are successful in your efforts, you can potentially save even more money by avoiding the fees that would otherwise be charged by a debt settlement company. But how hard is it, really?

The answer, unfortunately, is that it's not easy. Debt settlement is a long process that demands patience and persistence. It can take anywhere from six or seven months to as long as two or more years to reach a settlement with creditors. Aside from the longevity of the process, the other thing to keep in mind is that there is no guarantee your debts will be settled. Negotiation is a two way street, and your creditors are under no obligation to reach an agreement. In fact, they can even bring legal action against you for refusal to pay your debts. So if you go at this alone, you need to prepared for everything -- including needing to hire an attorney.

While there is a substantial risk involved for those who want to settle their own debts, the risk in being scammed by an unethical debt relief company has shrank significantly. In the recent past, there was virtually zero regulation of the debt relief industry. In 2010, all that has changed.The Federal Trade Commission now strictly regulates debt settlement companies, and the industry is much cleaner as a result.

All in all, taking into account the time and risk involved in attempting to settle your own debt, while also knowing that it is, metaphorically speaking, safe to go back into the water with debt relief companies, the prudent person may want to just hire a professional for the job. But if you have the time and patience to thoroughly research the subject and follow through with your negotiation, by all means go for it and good luck to you. If you want to hire a debt settlement company, there are many great ones out there (just be careful, there are some bad ones too). In either event, ask the right questions, do your research, and you fill find success on your way to debt freedom.

http://www.articlesbase.com/credit-articles/you-can-settle-your-own-debts-but-should-you-3556605.html

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