Negotiate a Debt Settlement

Debt Settlement on my own?

I have 25,000 in credit debt and 40,000 in income but with car payments, rent and expenses I never seem to get anywhere with my debt. I am still current but all the rest of my money goes to credit cards. I don't use the cards anymore but I just make small dents in what I owe. I looked into debt settlement with a professional but I would like to do it myself if I can. The settlement company told me I would stop paying my creditors and that they would have me put a payment into an account with them until I am seriously behind and then they would negotiate with the creditors. If I did this on my own should I stop paying all my credit cards and put my money into an account so I have something to pay to the creditors when I settle or should I try to use the money to knock out the smaller ones and try to negotiate the bigger ones?

Public Comments

1. I think you are better off to do this on your own. I did - it took me awhile but I made it. Here is a website that can give you information about the best way to settle collection accounts and try to deal with creditors: www.creditinfocenter.com. I found the book Young, Fabulous and Broke by Suze Orman to be very helpful when I was trying to get out of debt and raise my credit score. She gives great no-nonsense and easy to read advice and steps to take. She talks you through budgets, credits scores, credit cards, interest rates, etc. Its an awesome book to educate yourself with. I wish you good luck in your climb out of debt. I know you can do it!
2. get copies of your credit reports first before you make a big mistake, if you are current stay current, as they told you THEY PURPOSELY MAKE YOU FALL BEHIND and then negotitate. read thru creditinfocenter com and check the Federal Trade Commission website for more information on Consolidation Companies.
3. Check out this http://www.poks.org/debthelp.html