Hiring A Bankruptcy Attorney For Peace Of Mind

Tips for Settling Debts Yourself

25 January 2017

Gabriel Freeman

Getting into debt can be very easy, but getting out of it is not. If you are stuck in debt and want to find a way out, one option you could consider is settling your debts. To do this, you could hire a company for help, or you could try settling the debts on your own. If you can successfully do this on your own, you will save money simply because you will not have to pay fees to the debt-relief agency. Here are some tips to help you do this.

Explain your hardship

Your creditors might be more willing to settle your debt if you have gone through a major hardship in life. For example, did a divorce cause you to fall behind and in debt severely? Did you lose your job? Was a close family member really ill? Any major event that you went through could be considered a hardship, and you will need to tell your creditors this when you call them and ask to settle your debt.

When you explain your hardship, one of the top goals is to convince them that they are better off accepting your settlement offer than denying it. You may explain that bankruptcy is your next step if you cannot settle these debts, and through bankruptcy they will receive nothing.

Make a plan when you call

Before you place your calls, write down all your debts and determine how much you can afford to pay. Creditors are more likely to settle your debts if you offer them lump-sum payments; however, this is not always an option. If you cannot pay lump-sum payments, offer to make payments in a certain amount and offer to pay 50 percent to 60 percent of the debt owed. Have a plan as to how long this will take and ask whether they will agree to this. You should also ask them to waive late fees and interest during your payment plan.

Get it in writing

Finally, you should make sure you get every agreement in writing after you talk to your creditors. Ask them to email you a copy of the agreement and look it over to make sure it is accurate. Once you have the agreements in writing, stick to them.

If you have tried this and cannot work out good deals with your creditors, you may want to talk to a debt-relief company or a bankruptcy attorney. These are both good options for finding out what you can do to get rid of all the debt you have. To learn more, contact a bankruptcy lawyer, such as one at Dennis Lee Burman Attorney at Law, today.

Share