Can I Negotiate a Debt Settlement On My Own?
Considering the average of consumer debt in Canada that accounts for more than $27,000 during the second quarter of 2013, Canadians are triggered to compel in eradicating their debt before it becomes inevitable. Other than the contemporary debt relief programs such as consumer credit counselling and debt consolidation, most Canadians are also seeking for a debt settlement.
The Basics of Debt Settlement
The main focus of any debt settlement program concerns on negotiating with your creditors for you to pay less than what you owe. The main goal is to always get a reduction of your principal. For instance, debt negotiators might ask your creditor to take $1,000 as full payment of your debt instead of the $3,000 that you originally owe. Most of the time, people who consider a debt settlement approach is likely to ask if they can negotiate on their own. Below are some pointers that will help you understand why it is ideal to get the aid of a skilled and licensed professional.
The Benefits of Professional Debt Settlement
The Right Path
Though debt settlement has several benefits, it may not be the right solution for you. In some cases, what might be better for you is debt consolidation or credit counselling. Moreover, upon evaluating your situation a consumer proposal or personal bankruptcy might be more beneficial for you. Choosing which debt relief solution is hard for you as it needs a thorough evaluation of your finances. In this case, a professional can determine and assess what debt relief option will suit you best.
In terms of negotiation, your creditors will likely to get the most of what you owe when you’re negotiating for yourself. Thus, to ensure that the outcome will favor you, you need the assistance of an expert debt negotiator. By doing so, an expert professional will help you get a great debt settlement. Hence, you can enjoy paying less in your principal which might be impossible if you negotiate on your own.
Debt settlement is unparalleled in a way that creditors mostly prefer a lump sum payment to settle your full debt. This means that if you negotiate the arrangements by yourself, your creditors will possibly disagree in any payment plan. In cases, when you’re accepted for debt settlement by a company of professional debt settlement, you can get a payment plan which they designed for you. This way, you can prevent paying much to your creditors in one setting.
Before You Attempt to Negotiate On Your Own
Before attempting to negotiate on your own, it is a must that you reach out to the experts. This is to be certain of the right debt solution for you. To learn more, simply fill out the debt relief form on this page.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.