When Is It Possible to Settle Debt Yourself?

Many people that find themselves swimming in debt wonder if they can settle that debt themselves.

The easy answer to that is yes. Chances are that you can. But the full answer to the question is actually a lot more complicated than that.

DIY (Do-It-Yourself) debt relief is possible in the vast majority of cases. At the same time, however, it is going to be incredibly frustrating and difficult.

Furthermore, DIY debt settlement doesn’t always work for everyone. Depending on the extent of your debt problem, it might be a much smarter idea to work with a professional debt settlement company from the get-go. Much of the time, the same habits that sunk you into debt in the first place make it incredibly hard to get out of it yourself.

Here are a few of the pros and cons of settling debt yourself.

Pros of DIY Debt Settlement

Do-It-Yourself debt settlement can be very beneficial. Here are a few of its pros:

  • You do not have to pay a fee to have a company settle your debts for you.
  • You do not have to give out your private information to a third party company.
  • You can settle any amount of debt you have. Some debt settlement agencies have a minimum amount of debt they will handle.

Cons of DIY Debt Settlement

While it definitely does have its pros, Do-It-Yourself debt settlement also has its fair share of cons. These include:

  • Some creditors will not work directly with you. They only go through a private relief company.
  • Each creditor has its own set of procedures. It can be difficult and time consuming to learn each.
  • If you make the wrong move, you can escalate your legal situation and possible increase your debt.
  • You might end up negotiating a less effective settlement than an experienced company could net you.
  • Settling debt yourself is time consuming and tiring. It can be emotionally draining.

What Should You Do?

So what should you do? Should you attempt to settle your debt yourself?

The answer to that depends on your personal situation. However, the vast majority of people would do well to work with a professional debt settlement company to make sure things are done in the most efficient and effective manner possible.

Furthermore, the results that you will get with DIY debt settlement will likely not be on par with the results you will get from working with a debt settlement company. Agencies experienced in debt relief know how to get you the best debt settlement deals possible.

Still not sure which route is for you? Meeting with a financial advisor or a credit counselor is an excellent way of feeling out the waters. Understanding your debt situation as it pertains to your finances is key in making the best decision regarding debt settlement.

Leave a Reply

Your email address will not be published. Required fields are marked *