Dealing with Debt Collectors 3

This is part 3 of dealing with debt collectors. If you are starting with this part first you may want to read dealing with debt collectors and then dealing with debt collectors 2

This information will be helpful in dealing with your debt and will help you in making a decision that you feel is in your best interest.

A lot of you are under the impression that you can settle your debts on your own rather than having to pay a debt settlement company to negotiate for you. The truth is that you most certainly can negotiate your debts on your own. Just as you can represent yourself in court or sell your home.

There is no rule saying that you have to hire someone else to settle your debt but what you have to really take into consideration is that, do you know enough about the procedures and the laws to get the best results possible. If it was really that easy I would be out or work and there would be no need for realtor's, lawyers, or debt settlement companies.

Let’s say you have $30,000 worth of unsecured credit card debt and are in collections right now. You call the debt collection company to negotiate a settlement. You have very strong negotiating skills and you get them to take 60% of the debt, which is $18,000. You saved $12,000 dollars, not bad and you did not have to hire anyone to do it.

Now take that same debt and give it to a good Debt Settlement Company and they settle that debt for 30% of the balance, which equals $9000. You have now saved $21,000 and guess what you didn’t have to do a single thing and you have someone else dealing with your debt for you.

The truth of the matter is that every credit card company has its own process and procedures when negotiating. The same goes for debt collectors so the approach has to be adjusted according to every situation. What is done with one of the company’s may work really well but if you approach another company the same way it could have no effect at all or it could jeopardize any chance of reaching a settlement.

When negotiating on a settlement it is not only knowing what to say but a big part of knowing what not to say. What you have to understand is that a good debt settlement company can almost always get you the best settlement because they have a better understanding of each company that is involved.

When you are speaking to your credit card company for example they already have more leverage to use then you do. Let me explain what I mean by that. When you are involved in the negotiations the debt collector or creditor uses your emotions and personal attachment to the debt against you. As some of you know from past experiences with calling your credit card company for something.

The people who have recently had their interest rates go up or their credit limits reduced and have called the credit card company to have them lower it, only to be told sorry we can’t do that for you. This is one of the reasons why people are starting to fall behind right now. The amount of the minimum payments have doubled or even tripled and still you see no real decline in your principle balance.

When a debt settlement company is negotiating with your creditors or collectors it is strictly business. Debt collectors know that they can’t get away with the kind of tactics they use on you when they speak with us. Also when a debt negotiations company is settling out millions of dollars worth of debt every month it will give them more leverage to receive better results for their clients.

Another benefit of using a reputable debt settlement company is that you know that you will have all your bases covered along with all legal documentation stating that everything is completely taken care of and can’t come back to haunt you later on down the road.

I have had more than my fair share of clients that have tried to deal directly with debt collectors only to find out that they were lied to about the arrangements that were agreed on. They will make offers to you and once pay they sell of the balance to another debt collections company who tries to collect the difference.

These companies will do whatever it takes to get you to pay them money. This is why you need someone who knows all the games these debt collectors try and play and can make sure that once a debt is settled that will be the end of it.

No matter what you decide to do you should understand the laws that are in place to protect you from debt collectors and creditors because they are betting that you probably don't know the laws under the Fair Debt Collections and Practices Act, so they will continue to say and do whatever they want. Some of you may even have had them contact you about a family member in order to reach them or they have contacted your family in order to find out information on you.

So just be careful in whatever decision you make and again if you have any question please let me know. You should also consider all of your options before you make a decision on what is in your best interest. If you are interested in some of those other options then you can review them here wish you the best of luck in your choice and hope you find your path to becoming debt free. Thank you for your time.