Financial bothers are not uncommon these days, and so the ever-increasing urge to learn the all different D I Y debt settlements. Debt settlement could be one grim and expensive task, and thus, doing it on your own could be a better option in terms of saving. This is because the more you bring bureaus and organizations into play, the more you are going to pay for their personal commissions. This would only worsen up your financial conditions, and hence below are some of the ‘Do it yourself’ debt settlement procedures you are ought to follow.
Negotiations can do the trick!
If not all, it could solve quite a few of your financial miseries. Get in touch with your lenders and debt collectors and try to reach some compromise with respect to interest rates. The interest rates on loans that are exceedingly high are the ones you should tackle first when you are looking to settle your long-term debts. By negotiating down the amount owed not only reduces the amount to be repaid, but would also prove one great morale-booster for the quick repayment of debt. For loans that you are unable to reduce the amount or the interest rate see if you can ask for possible extension of the loan repayment. In many situations you may find the lender to more lenient when it comes to extending the term. There are many case studies done by various companies as well as various white papers by both private companies and municipalities on how to negotiate. Be sure to read these guidelines to prepare yourself for better negotiating with your debtors.
List all the debts and payments
Put down all the debts you owe in a very organized fashion. Then, do some basic calculations to determine how much are you able to save each month after paying for all urgent and household items. Determine how much you can realistically pay back toward your debt. Cut down on all unnecessary expenses so that you can enough to pay at least a portion of your debt each month.
The big question – how to prioritize your debts payment?
This query often buzzes the minds of many, especially those who have to repay a number of small and relatively bigger loans, all with different rates of interest. The solution may be to consolidate various high interest loans into a single loan with a better interest rate. This consolidation not only allows for easier management of your debt but also lowers your overall monthly payment since you have bundled various high interest loans into a lower interest rate. It is not recommended to include your mortgage in this bundle since your mortgage is secured by your precious home and in case of any miscalculation or miss-payment, your home could be in jeopardy. However, if you choose to bundle your mortgage along with other loans into a single loan, be absolutely sure that you are able to make the payments every month. Remember your home is your most important and precious asset; therefore, be cautious about your financial decision. Additionally, it is a good idea to seek the assistance of a financial professional.
There are many sites out there that can assist you with your debt or providing free debt analysis. Make sure that you take full advantage of these programs to better prepare yourself to deal with you debt settlement.