6 tips for the do-it-yourself debt manager


Many people just admit that they are going through a debt problem and then they just leave everything on a credit repair firm or a professional debt manager or counselor. Some people even take the services of an attorney or financial advisory in order to solve their debt issues. 

However, for some people it is about control. They want control of everything, ranging from correspondence, negotiations, phone calls, to various other issues that are a part of debt management. Both the sides have their own advantages as well as disadvantages. 

If you are a practical person and understand financial problems well, then it is possible for you to deal with your debt challenges on your own and thus save some money. However, if you cannot negotiate with creditors, write strong letters to the credit bureaus, etc., you must choose to hire a reputable professional of debt management or debt manager. In this article, we provide 6 tips, if you choose to do it all on your own. 

  1. Pay some money directly

If you handle your debt negotiations yourself, you must get ready to pay some of the money directly to your lenders. They may ask for a minimum of 50 per cent of your total loan directly, however, you can even negotiate this figure. Remember that some creditors would not even start to negotiate till they get some of your money. 

  1. Prepare to handle a lawyer

    Image courtesy: Pixabay
    Image courtesy: Pixabay

Many creditors have customer service representatives or agents for handling some of their debt negotiations. However, sometime in the future, you must be ready to see an attorney on behalf of the creditor. Generally, there has to be a significant debt amount before such a thing happens. 

  1. Pay your credit through a money order

When you pay to your creditor through your banking account or credit card, the creditor gets all your important banking details in the whole process. And, if you get sued, then it is very easy for your creditor to take your funds via your bank account. Therefore, you must ensure to make payments through a money order and thus become your own debt manager. 

  1. Request for ‘Paid in Full’ status

Most of the creditors generally settle for less on the dollar in order to assure that atleast they acquired something back. This means that you pay a smaller amount for a lump sum payment, but you must also ask them to show your debt on your credit report as paid. ‘Debt satisfied’ or ‘fully paid’ are the words that you must look for and not ‘debt still active.’ Remember that it is better to ask. 

  1. Bring an attorney to defend yourself

If either of the party fails to match their bargain level or if the negotiations go nowhere, then there are lawsuits. It is better to prepare yourself early for them by bringing an attorney and becoming your own debt manager. 

  1. Be rational

    Image courtesy: Wikimedia Commons
    Image courtesy: Wikimedia Commons

You may get tempted to back off a little bit and many also accept a deal of repayment that can be too much for you. However, this is not the right thing to do. You must not agree to any of the debt payment plans for which you cannot pay. You must be honest with yourself and tell them the amount that you can pay. Additionally, you must tell them that if they ask for more, you can become bankrupt, where they will not get any of their payments back.

If you can handle your debt problems and have the expertise, time, as well as the detail-oriented conduct of a qualified debt manager, then it is the correct path for you. You must try to begin with a convenient trial period of 90 days. And, when this time period finishes, if you have negotiated and made solid advances towards diminishing your debt and increasing your credit score, then you must carry on with it. And, if you cannot, then it is time to take help from a professional.