The old advice about eliminating the middle man is applicable in debt settlement as well. While it's not always a bad decision to hire a third party to negotiate with your creditors for you, it's not always a good idea, either. Here are some of the advantages to doing your debt settlement yourself, as well as some strategies for doing so effectively.

1. No fees
If you are already in debt and having trouble making payments, the last thing you need is another entity to pay. Yes, debt settlement companies will consolidate your debt, but the inescapable fact is, these companies will charge you fees. It would be better to negotiate with your creditors yourself and, even if you do not get the debt reduced as low as a professional might, the fees you save will be worth it.

2. DIY is faster
Negotiating through a company takes a great deal of time. There are more phone calls to be made and more people to deal with. Dealing directly with your creditors will get things settled faster.

3. You decide the payment amount
Many third-party debt negotiators have fixed monthly payments, from which they deduct their fees. While this is not wrong and is an acceptable business practice, it may be more acceptable to you to decide yourself what you are able to pay per month. 

1. Be prepared
Before calling your creditor, make sure you have read and understand your current bill, and have that bill in front of you when you make the call. Also, have an amount in mind that you are able to pay per month or, in some cases, in a single payment.

2. Talk to the right person and keep your cool
Creditors can be harsh, and the person on the other end of the phone line may not be trained in debt negotiations. Make it clear that you are willing to make payments from the beginning of the call, and if necessary, politely but firmly ask to speak to the supervisor or manager.

3. Get all the information you can from the call
Be sure to get names of everyone with whom you speak, as well as call-back telephone numbers and, in the case of the supervisor, a mailing address. If the call is unsuccessful, you can write a certified letter to the department head, specifying the amount of the payments you are willing to make. Also, write down the time and date of the call. It's best to keep a separate file for each creditor and write the information in the file.

4. Insist on a letter from the creditor
Verbal agreements are not enough - when you and the creditor agree on a payment amount and schedule, you need something in writing from the creditor that outlines the details of your settlement.

5. Know your rights
Creditors can be intimidating, and if you are ignorant of your rights, they may take advantage of you. Check with the Federal Trade Commission and get the facts before you call.

DIY debt settlement can save time and money, as long as it is done carefully and thoroughly. For more tips, you can check out: Money Sense Tips