The option of using a debt settlement company is not compulsory. You always have the choice of getting in touch with lenders on your own. Since lenders are interested in repayment, they will be ready to negotiate with you or with your representative without any complaints. This is exactly what most people think and that is the reason why they contact their lenders for settlement. There are many success stories as well.
However, it is a completely different matter when you have multiple accounts and when you owe a large amount of money to each lender. If you owe more than $ 40000 dollars to a single credit card issuer, then you will find it easy to get a settlement on your own. This is because you would be a high risk customer for the lender. They would focus more on the money and not whether you deal personally or through a professional settlement company.
They will not mind providing a 50% waiver as the balance amount will be high enough to improve their finances. Here, the mere fact that you owe so much money overshadows all other problems or issues.
On the other hand if you owe four thousand dollars to ten different credit card issuers, then your leverage and negotiating capacity comes down drastically. This is because a debt of four thousand dollars, even if it becomes bad, will not affect the finances of the credit card issuer. They will not be keen on offering a 50% waiver just to recover $2000. They will simply offer a 20% waiver and claim that it is the final deal.
This is when employing the services of debt settlement expert becomes imperative. You cannot
- get in touch with ten different service providers
- negotiate with ten different representatives and
- finalizes ten settlement agreement
without losing your mind in the process.
For starters, you will have to spend all your time working on the settlement and you will have no time to attend other tasks including your daily job. You do not want to get fired when searching for a settlement deal, do you?
Further, the amount may be large enough to push you into bankruptcy but it may not be enough to secure a high waiver from your lender. Being offered a ten or fifteen percent waiver does not serve any purpose. You will have bulk of your debts left in your hand and it will be very difficult for you to settle your debts without opting for bankruptcy.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below: