Many times prospective clients will contact our company, and after talking with a consultant state very sternly, “Well I can do that all by myself, why do I need to hire you?” Our response is simply, you can IF:

It's always best to avoid having your debts get to this point, in the first place. We know this, however most of the time our clients got here through no fault of their own. There was a sickness, a death, a divorce, a job loss, a wage reduction, and the list goes on. However, once you are here, you do have options.

Debt negotiations can be a difficult and lengthy process and most likely your time is better spent elsewhere. However, you would literally need the patience of Job to do it yourself. Debt collectors can be, threatening, harassing and down right mean. Trust me, we hear it all. If the debt collection agency is also a law firm, you could see judgments against you in no time. Then what do you do?

Our suggestion: stay away from companies that state there is a “secret that the credit cards do not want you to know.” There is no such secret. Debt negotiation is debt negotiation. It is arguing back and forth between two parties to come up with an agreeable settlement between two parties.

Second, never pay a creditor until you have the settlement letter in hand. Sure a collector can tell you that his company will take X dollars for a settlement. However after you pay it off, assuming you have the money to do so, unless you have something in writing from the other company, it will go back to your word against their word. Get the settlement letter in writing first.

Third, most of these companies will want a lump sum payment. That is why debt relief companies set up a bank or trust account for you to pay off settlements in lump sums. However, some collection agencies will take monthly payments. If you do not have a lump sum to pay off the negotiated amount, ask for a payment plan.

Finally, never lose hope. Although these people can be down right mean to you, you have to remember that it is unsecured debt that you are dealing with. Unlike secured debt like your home or car, unsecured debt is different, hence negotiable.