Credit Protection Service Steps - Just Do It Yourself?

There are many websites that offer to provide credit protection services. Deciding to pay the fees associated with using one of these services or doing it yourself depends entirely on you. Your decision should be based on a basic understanding about the types of services provided by credit protection companies and what value the services provide.

What are Credit Protection Services?

Credit protection services, which are a broad term for consumer credit counseling, provide mediation and resolution services to debtors. These services work with individuals that have bad or poor credit and negotiate with their creditors to reduce their liabilities. Many of these services are staffed with experienced credit counselors that are able to speak directly with a person’s creditor. In many cases this allows the outstanding debt to be reduced to a fraction of the amount owed.

The Value of Credit Protection Services

A credit protection service or consumer credit counseling service’s value is in its experience. A good service has the ability to convince creditors that accepting a lower payment will help them eliminate a debt that in many cases the creditor has written off as a loss, and recoup some of their money. This allows the debtor to reduce their debt and get in good standing, while the creditor is able to retire this outstanding obligation.

The Problem with Do-it-Yourself

The problem with the do-it-yourself plan is that most people lack the experience or ability to negotiate lower debt payments. Depending on the outstanding debt and the length of time, most creditors pursue the debtor relentlessly. Often, they are not willing to negotiate a lower payment. A credit protection service works best by acting as a middleman in the process.  The service is a conduit between the creditor and debtor and finds the best possible deal for both parties.

Leave it to the Professionals

It is not generally advisable for most people who have long outstanding debts to engage in the do-it-yourself process, unless they are well-versed in finance. The fact that the debt has been outstanding for a period should give some indication of the person’s unwillingness in the past to address their situation. Understanding the steps that a credit protection service goes through to negotiate and reduce a person’s payment is not going to make a debtor more inclined to turn over a new leaf. Utilizing the service of the credit protection service or consumer credit counselor may be the impetus needed to get the debtor back on track.

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