Negotiating Debt Settlement: Reasons to Do It Yourself

When negotiating a debt settlement, you can hire someone to take care of the process, or you can do it yourself. Although hiring someone can be appealing, there are several benefits to handling the settlement yourself.


One of the most important reasons you may want to negotiate the settlement on your own is to remain in control at all times. When you turn over your financial matters to someone else, any mistakes made will affect you directly. The person negotiating for you may agree to something that you would not have agreed to. If you are the one making decisions about the terms of the agreement, avoiding problems that you did not create can be easier. 


When you hire a lawyer, credit counseling company or another party to negotiate for you, there will be costs involved, often significant costs. When you are deep in debt, the last thing that you need is to spend more money on something unnecessary. The money that you would spend on a negotiator could better be spent on paying off the debt. 

Credit Score Impact

When you take care of this process yourself, you can place an emphasis on what happens to your credit score. Your credit score is one of the most important numbers that you have. Someone else may not take the care and consideration that you would with your own credit score. He or she may agree to something that can really damage your score.

When you settle a debt, you should always ask the creditor to remove any blemishes from your credit report. Creditors are not obligated to report anything in particular to the credit bureaus. Therefore, as part of the settlement, you should ask them to reflect only positive things on your credit report in exchange for payment. Creditors will often be willing to accommodate your request if you live up to your end of the bargain. When you hire someone else to handle this process, he or she might just be focusing on getting the best monetary settlement.

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