These days, debt is synonymous with the American experience. An overwhelming majority of Americans are saddled with some form of debt, whether it be credit cards, past-due bills, or student loans. If you're struggling with debt and looking for a way out, joining forces with a debt settlement company could be your best bet to get your financial house in order.
There's also the do-it-yourself option of negotiating with creditors on your own. DIY debt settlement is a surprisingly popular choice for those looking to save money in fees. As you'll soon discover, however, there are plenty of good reasons why you'd want an experienced debt settlement team by your side.
You're on Your Own During Negotiations
When you go the DIY route, it's just you versus an entire team of creditors focused on getting you to pay up in full. When you enter into negotiations on your own, there's no one you can turn to for help and advice. Being on your own can also take an unexpected psychological toll, leaving you drained and unsure of what to do or what will happen next.
You Lack the Experience Debt Settlement Firms Possess
Debt settlement companies have several years of experience dealing with creditors. Not only do debt settlement companies understand the basics of negotiating debt, but their knowledge also extends to intricate details and nuances the average person may not be aware of.
Being without that extensive knowledge puts you at a distinct disadvantage when it comes to settling your debts. Even the best hagglers and negotiators can struggle to get a fair deal without knowing the ins and outs of debt settlement.
Learning that knowledge for yourself also takes time. Unfortunately, time is often of the essence when dealing with debt. The longer you have it, the more damage it could do to your credit score and your ability to make major life-enhancing purchases, such as buying a new home.
The Process Could Prove Too Stressful to Handle
Before diving into a DIY debt settlement, you should ask yourself if you're ready to deal with the hassle involved. Dealing with creditors through collection letters and phone calls is already stressful enough, but direct negotiations could prove disastrous if you lose your cool.
Some people simply don't handle stress well while others find it hard to remain calm and in control when talking to creditors. If you fall into either category, you should let a debt settlement company do the talking on your behalf. Leaving the debt settlement process to the pros lets you focus on the things that matter most to you.
Don't forget that debt collectors can't legally harass or intimidate you or anyone else they contact concerning your debt, as per the Fair Debt Collection Practices Act. There are steps you can take to curb debt collector harassment, such as telling the creditor in writing to stop contacting you about the debt.
Negotiations Can Prove Time-Consuming
Debt settlements are rarely quick, especially if you go at it alone. Plenty of factors exist that make the entire process tedious and time-consuming for the average person. Whereas debt settlement companies can deal with multiple creditors at once, for instance, that might not be possible when negotiating on your own. Your only option, in most cases, is to deal with each creditor on a one-on-one basis.
Some creditors make it exceptionally difficult to get the ball rolling on negotiations. From tracking down the right person in the right department to back-and-forth negotiations that seem to go nowhere, DIY debt settlement takes up time and effort better spent elsewhere.
If you can't afford to spend valuable time negotiating with creditors, then you're better off having a seasoned firm reduce your debts and pave the way for financial freedom.
For more information, contact a company that handles debt settlements.