Do it Yourself Debt Settlement – The Top Seven Things You Need to Know

Want to get rid of your debt but don’t want to file for bankruptcy or risk foreclosure? If so, debt settlement is an option worth considering. You might think you can’t settle your debt on your own, but the truth is you can do it yourself. There’s no law that says you have to hire a company to handle the debt settlement process. In fact, hiring an outside company usually means paying the company a hefty commission based on the total amount of your debt.

The key to successful debt settlement is negotiation and it’s a skill anyone can learn. Just follow these seven simple steps to do it yourself. Remember when you negotiate, you’re not only reducing the amount you pay individual credit card companies each month. You’re also lowering your total debt by 50 to 80 percent.

Once you start negotiating with creditors you’ll find that settlement amounts will vary. Some may offer as low as 30% and others up to 50%. Some will even forgive most of the amount you owe. Try it and in about six months you’ll be off to a fresh start.

Here are seven debt settlement and creditor negotiation steps you can do yourself:
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  1. First you need to accumulate a sizable amount of unmanageable debt, which you’ve probably already done since you’re thinking about settling.
  2. Next you have to determine that debt settlement is your best option.
  3. Once you make that determination, stop making your monthly payments.
  4. Take the money you would have spent making those payments and put it into a savings account. Or if you can, try to get a loan with a low or zero percent interest rate from family or friends.
  5. Begin negotiating with creditors about five to six months after you stop paying your monthly bills.
  6. Negotiate with each creditor until you get them to agree to settle for 50 to 80 percent of the balance owed.
  7. Get each creditor to send you a written settlement letter that specifies the terms that were agreed to. Do not skip this step!


Wondering why creditors would agree to settle so low? Let’s face it. If you can’t pay your bills each month, creditors realize you probably won’t ever pay the balance. They know you have the option to file for bankruptcy and that if you do, they might not get any money from you at all, depending on the outcome.

They could hire a debt collector, but they have to pay for that service, which further cuts into the amount they recoup. If your account has passed the charge off date, a creditor might sell the account to a collection agency for a measly five or ten cents on every dollar. As you can see, settling is sometimes their best option.

Good luck with your negotiations. You can do it!

In order to find out more about debt settlement processing, you can visit our site

Krista Scruggs is an article contributor to is an informative site about debt settlement processing which also connects consumers with service providers that can help them avoid bankruptcy. We have several Debt Settlement companies within our network, each with their own strengths and specialties. Depending on your specific situation (the amount of debt owed, nature of your debt, your credit, your hardship, and any other unique situation you might be in), we will match you up with the right company.

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