How to do Debt Settlement Yourself

Debt settlement is a stressful thing to do as it only comes up with you are facing bankruptcy. You can get an agency to help you with the debt settlement or you can try to do it yourself.

Instructions

1

GET A FULL PICTURE Add up the total amount of debt you owe. This will surely be unpleasant and something you don't want to do, but you must know your total debt if you are to take care of the problem.

2

CREDIT REPORT I know, I know...you're thinking, "I know my credit score is bad, that's why I'm learning how to do debt settlement!" The report is not to know your score, it is to see if your debts have been sold or turned over to another company or collection agency. Find out who currently owns all your debts.

3

PRIORITIZE Start with debts that are secured first. It is better to take care of those debts (regardless of the size) before your secured asset (such as home or car) are repossessed.
Once you have your list in order, use a database to find out how to contact the company or agency.

4

OFFER If you can make an offer of a total lump sum in cash, you may be able to negotiate a debt settlement of up to 50% of the total. If you can offer to repay the debt in six months or less, you can probably talk them out of the late fees and other fees and/or taxes. You may be able to work out a long term plan for one to five years, but you will pay very high interest.

5

WRITE When you are prepared with contact information and what you can offer, write a letter detailing how you plan to pay off your debt and why the company should accept your offer. Let them know that you are working this way with all your debts.