Debt consolidators actually earn through you by providing you services in compiling all your debt and securing everything to lower your interest rates. While bankruptcy is not your foremost option, debt consolidation may be expensive. An alternative is to settle your debts by yourself. Here are a few things to remember.
Debt settlement is the process of offering a large one-time payment for an balance in return for the forgiveness of a remaining debt. Most lenders consider business as negotiable and if the debt is merely “impossible” or large, or it would take a great time for the debtor to pay off, a customer may offer a large fixed sum that is not the total of the balance, but is a large one-time payment that will allow them the privilege of having the lender erase the remaining balance.
The focus of the credit card company or your lender must be you. They must deal with you directly and that you represent yourself. Make yourself appear that you’re in a bad financial position. Lender may actually believe that you’re having difficulties but be sure your credit card spending does not point to luxurious trips. If you cut your spending on the card for at least three to six months before requesting a settlement, you have better chances.