It is not always necessary to hire a professional service for debt settlement or debt consolidation and money management. In fact, one of the best ways to do so and also get out of debt easily and effectively is by doing it yourself. All you need for this is to have the following:

  • A due diligence
  • A constant effort
  • A proper budget
  • A disciplined and organized life and
  • An analytical skill of your financial situation.

All these will ensure that you have a better control over your finance and debt to enjoy a debt-free life. These following steps will help you to do all those things that you will find those debt relief agencies such as and others do that includes:

  • Debt settlement
  • Debt consolidation
  • Debt and money management
  • Dealing with the collection agencies
  • Repairing your credit and even
  • Dealing with bankruptcy.

You will be able to fix your debt problems easily and efficiently without any help required from a professional and pay for their service. The amount of money you save this way can be utilized further towards paying off your debts thereby reducing the time of being in debt in the process.

Do it yourself debt settlement

debt settlement

Debt settlement may be the right choice for you when you find it difficult to make even the minimum payments on your monthly bills due to anunexpected financial hardship. The steps to follow include:

  • Compiling the facts after conducting a thorough analysis of your income, expenses and debts so that you can convince your creditors that you cannot make full payments
  • Deciding your repayment strategy after prioritizing your debts and finding out how much you can actually pay to the creditor
  • Starting to save money to create a fund before even startingthe negotiationprocess
  • Revealing all facts during negotiation and making a settlement offer and counter offer and be patient till a settlement agreement is reached
  • Getting a written agreementwith the settlement amount and payoff strategy clearly written in it
  • Handing over the moneyon the specific date mentioned in your settlement agreement
  • Calculating how much you saved because you will have to pay tax on it
  • Scanning through your credit report to ensure it has been updated properly.

Click on the below given button to read about “10 Things to Remember Before Applying for a Loan on Mutual Funds“.

Do it yourself debt consolidation

This is the smartest way to go ahead if you want to reduce the amount of interest you pay to creditors. The steps to follow are:

  • Prioritizing your debts with the names of the creditors and arranging them according to the rate of interest
  • Calculating your affordability to pay on your bills each month considering your income including your salary and state benefits
  • Deciding which debt to repay first after making sure that the creditors still hold your debt and has not sold it to a collection agency
  • Validating your debt if it is turned over to a collection agencybefore you start paying by using a debt validation letter to send in your request and
  • Negotiating with creditors or the collection agency forlower interest rates on your high interest debts making sure that the total monthly payment does not exceed your affordability.

If you are consolidating credit card debts with small balances you can consider a balance transfer to a low or 0% interest rate credit card. But before making a balance transfer make sure that:

  • You check the terms for a reasonably long introductory period so that you have enough time to pay off the total balance at this introductory rate
  • You check for any fees that the credit card company may charge for balance transfer and
  • You avoid applying for a new card or canceling any existing credit cards.

Do it yourself debt management

Debt Management

You must organize your money as well so that you can maintain a proper balance with your bills to your daily expenses. You can use the Snowball Method for debt repayment following these steps:

  • Make a list of your income from all known sources
  • Find out how much you owe to your creditors
  • Design a strategic monthly budget to monitor and keep track of your income and expenses using proper budget worksheet and following the budgeting tips
  • Find out the amount you can pay on your bills each month
  • Decide the accounts you want to pay first considering the highest interest rates or the lowest balance
  • Pay more than the minimum payment every month on the first debt you want to pay off
  • Continue paying the minimum on your other debts and
  • Continue repeating the above two steps until you are debt free.

Dealing with the collection agency

debt collecting Agency

Assuming that your debt is handed on o a collection agency, you can follow these specific steps to deal with them instead of panicking even if they take the legal route to get money from you.

  • Scan your credit report to find out that the debt alleged is really listed on it
  • Get to know the relevant laws for debt collection from the FDCPA so that you can take legal actions for harassment by the debt collector if any
  • Ask the collector for information such as name, address and contact number of him or her, the creditors and even the collection agency they represent
  • Keep records of all conversations noting down the key points of each conversation or the entire of it as per the state laws
  • Send a validation letter to the collection agency asking them to validate your debt
  • Send a letter to cease all kinds of communication when the debt is not validated or it has the Statute of Limitation period
  • Initiate negotiation process by informing politely but firmly the amount you can pay and even negotiate with the collector to lower the payable amount
  • Ask for a written agreement from the collector and not pay anything until you receive it and
  • Send payments through money order as per the repayment plan so that you do not reveal your bank account details to the collection agency.

All these steps will help you to get rid of your debt fast and restore peace in mind and a sense of achievement.

Easy Do It Yourself Debt Consolidation And Settlement
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Easy Do It Yourself Debt Consolidation And Settlement
One of the best ways to do debt consolidation and settlement is by having a proper budget and putting up constant efforts. Also by having a disciplined and organized life.
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