Negotiating Debt Settlement: Reasons to Do It Yourself

When negotiating debt settlement, you have two options. You can hire someone to do it for you, or you can do it yourself. While hiring someone can be enticing, there are several benefits that you gain by doing it yourself. Here are a few reasons that you might want to negotiate your own debt settlement. 

Control

One of the most important reasons that you may want to negotiate the settlement yourself is so that you can remain in control at all times. When you turn over your financial matters to someone else, any mistakes made will affect you directly. The person negotiating for you may agree to something that you would not have agreed to. When you do it yourself, you can rest assured that you will agree only to the terms that you like. This can help you avoid large financial problems that you did not create. 

Costs

When you hire a lawyer, credit counseling company or someone else to negotiate for you, there will be costs involved. In many cases, these costs can be significant. When you are deep in debt, the last thing that you need is to spend more money on something that is not completely necessary. The money that you would spend on a negotiator could better be spent on paying off the debt. 

Credit Score Impact

When you take care of this process yourself, you can place an emphasis on what happens to your credit score. Your credit score is one of the most important numbers that you have. When you leave it in the hands of someone else, it can eventually come back to hurt you. Someone else may not take the care and consideration that you would with your own credit score. He or she may agree to something that can really damage your score.

When you settle a debt, you should always ask the creditor to remove any blemishes from your credit report. Creditors are not obligated to report anything in particular to the credit bureaus. Therefore, as part of the settlement, you should ask them to reflect only positive things on your credit report in exchange for payment. Many times, creditors will be willing to accommodate your request if you live up to your end of the bargain. When you hire someone else to handle this process, he or she might just be focusing on getting the best monetary settlement. 

Timeline

Anytime you involve someone else in the process, it is going to take more time to complete the job. When you hire someone to negotiate your debt settlement for you, you are going to have to spend extra time with him or her. You will have to relay all of the information that you have before he or she can properly negotiate. You will have to go over your financial information, your debts and anything else that he or she may need to know. He or she will then negotiate and get back to you. If you just handle it yourself, you can get done much quicker.