Thanks for coming to learn about Do It Yourself Debt Settlement! We're here to help you create your own Debt Settlement Plan, save the cost of Debt Settlement Companies AND identify the personal barriers that have made your do it yourself debt settlement plans a failure in the past!
Pros And Cons Of Do It Yourself Debt Settlement
What are the adverse effects as well as the benefits of do it yourself debt settlement?
Pro's of do it yourself debt settlement plans
1. You eliminate debt
2. You keep a clear conscience and self-respect
3. You save the expense of debt settlement companies
4. Your credit report should show the debt was discharged and not "unpaid" (but see below) so some improvement on your credit rating if the company the debt was owed to reports to the credit bureaus.
5. You have that much less stress economically and emotionally.
6. You are financially wiser and less likely to make that mistake again.
7. You have - for that debt at least - avoided a lawsuit or bankruptcy and saved the emotional turmoil and costs of bankruptcy.
8. Should a subsequent bankruptcy occur, your do it yourself debt settlement may show good faith on your part.
Con's of do it yourself debt settlement plans
1. Though your credit rating reflects a paid debt, it reflects a debt paid on altered terms.
2. Because companies are unlikely to settle debts that are current, the fact that you have been able to do a do it yourself debt settlement plan indicates you were at least 90 days past due - a financial crisis.
3. It's possible you may not be able to negotiate a lower settlement than a professional could have. But this may be outweighed by the fact that you pay no fees.
4. The stress may tend to overwhelm you.
5. Compared to credit card debt consolidation through a non profit agency, you may have to have large amounts of cash at one time instead of a monthly payment.
6. People doing do it yourself debt settlement are more likely to make mistakes such as FAILING TO GET DEBT SETTLEMENT PLANS IN WRITING so that a negotiated debt that's paid fully discharges the debt in the eyes of the creditor. If you don't have this signed document, they may attempt to collect the balance later.
Disclaimer: Remember, this information is believed to be correct. Not being attorneys, we recommend you talk to your personal financial advisors on how to apply general principles to your own personal situation.
