If you find yourself struggling to get out from under your own debt, you’re not alone. Today, there are a lot of options for recovering from your debt. However, it takes an action-driven strategy. You can always attempt to settle your debt on your own, but this takes a lot of know-how and expertise. Should you let others negotiate your debt for you?
Relying on a financial expert has a lot of perks. Not only do you not have to worry about whether you’re making the right steps yourself, but you have someone advocating for you. A DIY debt settlement or negotiation is possible, but it comes with a lot of risks. Though it might not sound like it, letting others negotiate your debt for you can be more cost-effective and efficient.
The Basics of Debt Negotiation
To begin, it’s important to understand what debt negotiation is. Debt negotiation is when a debtor and a creditor work together to settle a debt. This is done on terms that are beneficial to both parties. Many creditors are open to receiving a lower amount if they get it upfront as a lump sum, or they might have alternative payment options.
This is an assertive way to reduce your debt or even eliminate it entirely. However, lenders are in the business of making money. They also have a lot of experience in debt negotiation. That means it’s not always easy as an everyday consumer to navigate this process on your own. While it is possible to work with your own lenders, it’s not usually recommended.
If your creditors are willing to settle for a lesser amount than what you owe, you might be a good fit for debt negotiation. This ultimately means having less to pay over time, saving you money. When you work with a debt negotiation expert, they handle this negotiating with the lender on your behalf.
The Benefits of Letting Others Negotiate Debt
With that in mind, what are the specific reasons you might let someone else negotiate debt on your behalf? If you’re dealing with a handful of debtors, you might not even know where to begin. This is likely your first time negotiating debt, and that leaves you lower on the playing field.
On the other hand, a debt expert is familiar with how to negotiate. They’ve helped countless others through these same steps. In fact, some are already familiar with the professionals at your lenders, making the process even faster. Here are the benefits of working with someone who negotiates your debt for you:
- Your rights: When someone works for you, it’s easier to protect your rights. You don’t have to worry about debt collectors harassing you for payments, and you have a barrier from this type of contact.
- Avoid miscommunications: It’s easy to create conflict around miscommunication if you try a DIY debt settlement. You might feel intimidated asking for what you need. A professional negotiator doesn’t have this worry.
- Reduce payments: The better your negotiator, the more likely you’ll pay less long-term for your debts. While this is never guaranteed, you want to use the best service possible to get the best results.
- Long-term plan: Working with a professional also sets you up for long-term success. Debt professionals don’t just negotiate your debts, they also help you plan your budget and other debt repayments.
What Are the Risks of Negotiating For Yourself?
While negotiation might not be the right fit for everyone, you have to recognize that there are some risks to doing this process yourself. It’s entirely possible to begin a DIY debt negotiation, but you’re more likely to experience the following:
- Fees: Late fees, interest, and more could add up quickly, adding even more to your existing debt.
- Rejection: Unfortunately, you are more likely to face a rejected negotiation or settlement if you attempt to do it yourself. This could be bad news if you have to submit a counteroffer later.
- Bankruptcy: If your debt negotiations and settlements are repeatedly denied, this might push you towards bankruptcy.
If you’d prefer to handle all of your debt repayment yourself (vs. working with a pro), other options are likely safer. You might choose a debt consolidation loan, balance transfer, or temporary payment forgiveness. These are easier to handle on your own, and they can still save you money. However, without the right long-term financial plan, they don’t address the root of the problem.
The Bottom Line on Debt Negotiation
Ultimately, it’s up to you how you wish to proceed on debt negotiation. This is technically something you can do yourself, but it’s not recommended. It’s always a good idea to work with a skilled professional when your financial wellness and debt are at risk. Since your goal is to get out from under your debt quickly, you need the right tools on your side.
Not sure where to begin when it comes to debt negotiation? The team at Debt Busters are here to help. Together, we’ll work through your current situation to decide what course of action is best for your goals. Contact our team today on 1300 368 322 to get started.