7- Tips to become a successful debt manager yourself
It is really hard to accept the harsh fact that you have a debt problem. After some time when the true realization comes, it is the time to pass the baton to a professional debt counsellor or credit Repair Company. In some of the rare cases, financial advisory or attorney may get into the picture. However, being in control is the key for solving the debt issue. If you can really understand financial issue properly, it is possible to tackle your debt challenge yourself. In this way, you might be able to save some money which otherwise could have been spent on the fee of financial advisor. But if the thought of negotiating with the creditors or writing long and persuasive letters to the credit bureaus and all of these tough tasks send you swooning , then it would be a better idea to hire a professional debt management professional.
Being a debt manager yourself:
Being a debt manager yourself has an advantage that nobody other than you be better able to understand your financial conditions. There is no need to explain third-party advisors of what you actually owe. How much money have been borrowed by you, or any medical or job loss issue that have bene faced by you that put you in a debt situation. So if you have decided to take control of your own destiny and become you own debt manager, then these are some of the specific tips that you need to look upon:
Pay some money up-front:The lender may want to get 50% up-front amount of your loan money. However, this amount is too negotiable. It is important to note that some creditors won’t even begin to negotiate once they get some money from you.
Dealing with an attorney:It is important to consider that various lenders and creditors have hired attorney and customer service reps to handle their debt negotiations. At some point to time, you need to be prepared to face the lawyer who is representing the lender. Usually, there must be a substantial amount of debt in the case this happens.
Pay money order or cash for any credit payments:When you make the payment to the creditor through your credit card or banking account, it is easier for a lender to get all the relevant information regarding your account balance and other banking information. So in case if you are sued, it would be easy for your creditor to get at your funds through your bank account. So it is important that you pay through a money order or cash payment.
Always seek for Paid in full status:Creditors usually settle for a lesser dollar amount so they can get some of the amount back rather than losing all. This means that you may be able to pay less for a lump-sum payment. But it is advisable that you should demand the debt as paid on your credit report. “Fully paid” or the “debt satisfied” should be the language you are looking for. Debt active should never be the statement that you want.
Opt for a realistic approach: You might get tempted to back down a bit and accept a repayment deal which is again quite high for you. This will be a great mistake on your part as never agree to a payment plan which you won’t be able to pay in future.
Find out how far creditor will go:If the creditor provides you an option for three months with no interest, ask for 6 months. Always, find that how much room of negotiations is available for you.
If you have a time, orientation and determination of a professional debt manager, it may be the right path for you to deal with your own debt situation. Try starting with a manageable trial period and see what results it brings for you.