Q: Can I negotiate a settlement with my creditors on my own?

A: Yes, you can. However, there are two things to keep in mind: 1) Credit counselors, DMP specialists, and debt arbitrators are trained professionals who work with creditors on behalf of clients every single day -- even if you follow the advice of this FAQ, you are unlikely to be as effective as an industry professional. 2) Dealing with creditors and bill collectors can be a real hassle, and it's easy for people to give up and throw in the towel. When you hire a professional, it is their job to deal with the headache, not yours. Furthermore, there are a lot of emotional issues surrounding unpaid debts, and when you have a professional working on your behalf, he or she is not caught up in the guilt or shame that you may be. This gives them better resolve when dealing with your creditors.

That said, there is certainly nothing to stop you from attempting to settle your debts on your own. In fact, although a professional may implement techniques better than you're able to, they aren't able to do anything you can't do for yourself.

The #1 rule when dealing with creditors is to get everything in writing and to maintain a record of all correspondence. If a creditor makes an offer over the phone, be sure to ask that they send it via mail, as well.

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