Debt counseling is the process of looking at your finances and your credit, and choosing the best course of action to help you pay off the debt sooner rather than later. You can do this yourself; you don’t necessarily have to pay someone to do it for you as long as you are willing to confront the debt head on and be honest with yourself. Do it yourself debt counseling works for many people, and even if it does not work, it may be worth your time and energy to attempt it on your own since there are fees associated with working with a debt counseling agency. Do it yourself debt counseling and associated actions are more successful when you are prepared.
Whatever course of action you have decided on, you need to be prepared before you call your creditors and attempt to settle or consolidate. Before calling obtain a copy of your current bill, written letters from the creditor offering a settlement, as well as the specific amount that you are able to pay upon settlement. This amount can be a lump sum or a monthly payment.
It is a good practice to ask for a manager as soon as you call your creditor. Most of the customer service representatives or the operators who pick up the phone don’t know about or are not authorized to make debt counseling offers. Asking to talk to someone in charge will usually yield you much better results. Be clear and concise about what you are willing to do. If the call gets heated in any way, thank the individual for their time and hang up. If calling is not successful, write a letter to the department manager or president of the company providing your offer for debt settlement, reduction, or negotiation and outline the dates that you will be making payments. This will make it obvious that you are serious and will likely result in more professional correspondence.
Many times if you go about reducing your debt in an organized manner through education and honesty, you will be successful. A lot of consumers are able to settle for 30 to 40 percent of their original balance, which will make paying off the debt so much easier. Of course, not everyone is able to counsel themselves and need to seek professional debt counseling, which can help you achieve a debt free status in less time than you might think.
