Are you someone who has racked up a huge amount on your multiple credit cards? If answered yes and if you’re wondering about the prospects of filing bankruptcy, you should initially check the impact of bankruptcy on your credit standing. Bankruptcy trashes your credit score and stays on your credit report for the next 7 years.
Therefore, it is rather a better idea to settle your debts through a debt settlement company so that you can repay your debts and lead a debt free life and also avoid the stigma of being called a bankrupt.
Are you aware of the ways in which you can settle your debts yourself and avoid being charged the service charges for the tasks that you can do on your own?
Here are the steps that you can take to settle your debts on your own.
1. Calculate the total debt amount
The foremost step to take is to calculate the total debt amount so that you know where you stand financially. Take out the records of all the credit card company statements, the interest rates that you’re paying on each account and the due dates on which your debt is due. You should stay ready with all these information so as to take immediate steps towards settling your debts.
2. Check your savings account
How much did you accumulate in your savings account? Even after they settle your debts and waive off a certain portion of your debt amount, will you be able to repay the remaining amount on your own? You’ll have to make single monthly payments towards the multiple debt accounts and you should check if you have that money to make timely payments towards the accounts
3. Negotiate with your creditors
This is the most important task that you have to do and if you can do this successfully, you can settle your debts on your own. You have to relate your financial hardship to the creditors so that they get to know the trouble that you’re going through. You have to make the entire thing credible enough so that the creditors don’t feel that you’re cooking up a story to get your debts waived off.
4. Decide an amount that you can pay
Then you should come up with an amount that you can pay according to your ability to repay and that will also suffice the needs of the creditors. Therefore, you need to assess your repayment ability and then start making timely payment towards your debt accounts.
So, when you’re spending sleepless nights worrying about your escalating debts, you might get help from a debt settlement company. Only when you think that you won’t be able to settle your debts on your own, you might get help from a professional debt settlement company. However, make sure the company that you’re choosing has your best interests in mind.
Mr.Patterson is a blogger, frugal husband, financial writer and lives near CA. He is been writing on different financial platforms since last 6 years.He likes to keep updating himself regarding recent developments in finance sector. He has written many article on weredefine.com.