You can settle your debt yourself. Whether you should do so or not depends on what is most important to you. Settling your debt yourself takes an investment of your time. It requires you to put in some effort into organizing your finances (and records). It also requires a bit of a thick skin.
Debt settlement companies do a lot of the work for you. This allows you to focus on making money and living your life. They take care of the details for you. They, of course, charge fees for their services.
An analogy might be helpful in the decision making process. Consider debt settlement similar to painting an entire house, inside and outside. Even if you have never painted a house before, you could to it all yourself or as a family project. It can be fun and rewarding to do so. Doing it yourself also saves you cash. Your expenses are limited to the cost of the paint, paint brushes, rollers, tarps, etc. that you will need to get the job done. If you don’t know anything about painting and want to do a good job, you need to spend some time finding out how to do it right. There are lots of do-it-yourself guides available in bookstores or online. Your local home improvement store may have free seminars you can attend. Once you know what to do, you have to put in the time to do the work. If you have a full-time job that means you’ll be doing it part-time on the weekends. If you stick to it, you will get your house painted exactly the way you want. You will also have the pride that you did it yourself and saved money. There are also professional painters you can pay who will paint the house the exact colors you want and all you have to do is pay their fees (including the cost of paint and materials) and more or less stay out of their way. They will get the job done in a relatively short period of time because they will do it full time and they are experienced at painting. As in any business, there are good painters and poor painters so you want to do a little checking before you decide to hire a particular one.
If you’re the type of person who would rather paint a house yourself instead of hire a painter, you might prefer to settle your own debt. If you’re more inclined to hire a painter, you might be better off hiring a debt settlement company to settle your debts.
Here are a few other questions to help you determine whether or not you should settle your own debt:
- Can you make time during the day to contact creditors and negotiate settlements during regular business hours?
- Do you prefer to keep your financial records neat, tidy, and filed?
- Do you enjoy learning new things and developing new skills?
- Are you a good communicator?
- Is saving money more important to you than saving time and/or effort?
If you answered yes to the majority of the above questions, you will very likely be successful in settling your own debt. If you answered no to the majority of these questions, you will have a much more difficult time settling your own debt and are probably better off hiring a debt settlement company to do it for you.