Thursday, February 17, 2011

Self Help Debt Settlement - Steps to Help You Negotiate Your Own Debt (Part 6)

One by One: Dealing with each creditor one by one

Okay, you know where you're at. You know what you can do. Now, it's time to start the process of negating with each creditor. If you have done your budget correctly, you will have a pretty good idea where to start.

Write a letter to the creditor

Write a hardship letter to the creditor, you will need to make sure all the information is correct. Include your account number, amount owed, and your correct contact information. The letter should include why your account has fallen behind, how your situation has changed. Be sure to also indicate the correct method that the creditor must communicate with you, as they are legally obligated to do so. Finally, it is important that you maintain a correct attitude when communicating with your creditors; you do owe them money after all.

File all communication

Not all creditors are created equal and some will want their money sooner than others. It is vital that you assemble a file for each creditor. You will need to include all correspondence that has been exchanged between yourself and the creditor. If there is ever a discrepancy between what you have said and what the creditor has said and legal action is taken, an organized file will become your best friend. Another reason this is important is when dealing through this process you may find that a lot of money is owed and it is important that you are able to remember and recall which creditors you are working with, so you don't become subject to judgments or wage garnishments as a result of you forgetting about a creditor that still needs to be paid.

Perhaps, the most important thing in preparing a plan is that you will minimize your problems. Dealing with creditors can be difficult and it can seem very overwhelming, once you are able to deal with each creditor one by one, you will find that solving and catching up on your debts is not as unattainable as it once looked like. More than that the process of reestablishing your credit will become easier and you will be more successful in having a stronger credit score sooner.

Ian Stanton
Director of Marketing
B-EZ Enterprises
(480) 278-3717