If you are looking for debt settlement, you may have realized that you will be much better off settling debt on your own than going through a debt settlement company. In order to do this successful you need to educate yourself on the process.
You would not be eligible for debt settlement unless your debt is no longer with the original creditors, but with collection agencies. In order to settle debt, you need to have 35-65% of the total debt owed on hand. This can be obtained in a few different ways. You can save each month until you have enough, or you could sell some items in order to get the money. You could also use your tax refund or extra income for this purpose.
Once you have enough money to make a proper settlement, you need to negotiate a deal between you and your creditor, which could be a collection agency or an attorney. They may have already sent you settlement offers in the mail. Review these offers and see if they are adequate. You may be able to negotiate a lower payment than what they are offering you. Always demand to see an offer in writing and review it once you have it in hand. The offer should detail all major provisions of the debt settlement, including that paying the agreed to amount clears you of any further legal obligation to that debt. Only after you have received and reviewed this written offer should you send in the required amount. Remember that you could owe taxes on forgiven debt. Plan on that when agreeing to a settlement.
You may be considering settling your debt in order to avoid legal action in the form of judgments. If you have several debts and can't afford to settle them all, start saving money and address them one by one as you receive notice of legal action. When you have been notified that the collector is seeking a judgment against you, then you can talk to them about amount to settle it out of court. You can then use the money you have saved up to pay this settlement. Of course not paying your debt greatly hurts your credit score, so keep that in mind. You may reach a point where bankruptcy is your best bet.
Make sure you've done your homework before settling your debts. You may have also realized that you don't qualify for debt settlement at all as your debts are still with the original creditors. If this is the case, you will want to seek action to keep you on track.
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