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advantage of a debt reduction settlement
Some consumers might think going to a credit counselor is a waste
of time. If there are fees involved, why they can save that money
and negotiate a debt reduction settlement themselves. Certainly,
any debtor can approach their creditors to try and obtain a "better
deal" on the interest and crushing payments they're dealing
with now. But are they skilled enough in dealing with people AND
finances, to come away with an advantage, or will they find themselves
in worse shape than before?
No matter how honest you intend to be with a creditor, some information
that seems relatively harmless to you, may end up as grounds for
a refusal of your debt reduction settlement request. If you hesitate
in telling them something, because you aren't sure if you should,
that too can have a negative impact when the creditor begins to
wonder what else you aren't telling them. If you try to use the
services of a credit counselor after a failed personal approach,
they may find the creditor unwilling to re-open your file.
Third Party Debt Reduction Settlement
A third party debt reduction settlement specialist, usually a professional
counselor with a credit counseling agency, is much more conversant
with what the creditor wants to hear, and how to present your case
and your finances in the light that will gain you the greatest benefits
in renegotiating your debts. These agencies work on a percentage
of what you save through their efforts, so it's in their best interests
to get you the as many concessions as possible. The more you save,
the more they earn. Or to look at it from another angle, the more
they are earning, the more they are saving you.
Anyone who deals with the public, or has a thorough understanding
of financial issues, may have the basic skills to open negotiations
with their creditors. They may even be successful in getting a debt
reduction settlement agreement, although not with all the benefits
that a trained professional credit counselor knows are available.
There are also legal and future financial considerations that may
come as a surprise to the inexperienced debtor attempting their
own negotiations.
For the best results, use your best weapon a trained debt reduction
settlement specialist.
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