Do it yourself debt settlement can save you a lot of money, many people live by the “if you want it done right, you’ve got to do it yourself” camp.

The thing to remember is you can do almost anything yourself if you have the right training, resources and time to do it. But realistically most people would rely on an auto mechanic to replace their transmission for them, or hire a lawyer if they wanted to finalize a divorce correctly. The same is true if you want your debt settled properly. Unless you really know what you are doing you should really leave it to the professionals.

There are many ways I have seen bill collectors try to take advantage of people that don’t understand how to negotiate and finalize a settlement; the most common problem I see is when the difference remains owed even after they thought it was settled in full. Bill collectors can rarely be trusted. We have heard from countless people that tried to settle their debts themselves only to find out they were duped by the bill collector and the balance of the debt has been sold to another collection agency.

If you are adamant about doing it yourself, first make sure you can budget a lot of your time (at least 20-25 hours) to deal with each creditor you owe and secondly do your homework and learn your stuff. There are lots of DIY guides out there but check out the author and make sure they have the know-how. Also, make sure you are committed to finishing the job as many debt settlement companies wont take over if you find you have bitten off more then you can chew. DIY debt settlement is a mess professional debt settlement companies do not like to clean up.

At the end of the day it may appear to cost more money to hire a professional company to negotiate settlements. However, when you consider the amount of resources and time that is needed to get it done right, it is much more cost effective to pay a company to do it for you.

Debt settlement is a for-profit business model; reputable companies aren’t shy about this. You just don’t get a team of highly skilled debt negotiators working on your side for free. Also, your creditors don’t pay money to the debt settlement company like they do with credit counselling. That way the debt settlement business is only working for you.

At the end of the process, your total cost to have your debt settled professionally should be about half of what you owe today, and that would include the fees. When you look at the real cost to settle professionally, it’s essentially free.

Look for a debt settlement company that compensates its team based on results and offers you a service guarantee. No settlement should equal, no fee. Avoid places that promote themselves as jacks of all trades, where they offer debt settlement, bankruptcy, credit counselling and debt consolidation loans all at the same place. Find a boutique shop like Total Debt Freedom Inc. that focuses their business on debt settlement and knows what they are doing. If you are not sure, ask questions.

If you feel it’s time to do something about your debt, and want a free debt settlement consultation then please visit our home page and request a no obligation quote.