The Advantages and Disadvantages of a D.I.Y. Debt Settlement

Settling a debt or debt settlement means to have a credit card debt (full or collective balance) be negotiated from its original amount down to more or less half. A debt settlement is a professional debt negotiation program that’s not sponsored by the government (unlike bankruptcy) but can be done by the consumers themselves. Consumers that are too skeptical or wary of entrusting their financial concern to a third party, can opt to do a d.i.y. debt settlement. Not only would doing it d.i.y. give them a peace of mind, they would also save some money on professional fees. It really can’t be helped too that there are people that would rather do things their way. Also, many creditors/collectors actually prefer dealing with the consumers than a third party debt negotiators – because they can save some money that way.

The chances of getting the best debt settlement percentages for a consumer that decides to do it d.i.y. are pretty low. And that might be the first disadvantage of a d.i.y. debt settlement for the consumer. Arriving at the best debt settlement offer is more possible when handled by a professional debt negotiator. Remember that debt negotiators, creditors and collectors know one another from dealing and transacting with one another on a regular basis. So questions like, “what is the best time to settle a debt – what is a fair or good settlement percentage – and which creditor/collector is hard to deal with?” – can be best answered by professional debt negotiators. Also, what do the consumer know about negotiating not just the principal amount of debt, but also the interest and the fees?

Another disadvantage of a d.i.y. debt settlement is the consumer is unprotected from incessant collection calls. One qualification in a debt settlement program is past due accounts. When an account is past due, the consumer is most likely already getting tons of collection calls – and entering the program would lessen those calls. So another disadvantage of a d.i.y. debt settlement is there won’t be a debt settlement company that would redirect the calls to them from the collectors. An enrollment in a settlement program may not completely eliminate all collection calls, but it would sure minimize them, giving consumers some extra anxiety-free time.

A D.I.Y. debt settlement and a professional debt settlement both work. As to which one works better depends on the situation, after all, not all cases are the same.