Most of the time, professional help is the way to go to get a handle on your debts.

The phone rings. You don’t pick it up, because you know that it’s going to be another debt collector. You’ve fallen behind – the mortgage, rent, credit cards. It doesn’t matter, you’re still under water for a lot of money and are looking for a way out.

It’s always best to avoid having your debts get to this point, if possible; you can deal with your creditors on your own, but it’s a good idea to work with an attorney, debt management service or debt counselor. Debt negotiations can be a difficult and lengthy process and most likely your time is better spent elsewhere. If you really want to go it alone, the following tips can help you negotiate the best settlement:

When you’re dealing with your original creditor, it’s a good idea to contact them directly by phone (something usually not done with collection agencies). It can be a little daunting to call someone who you owe a large debt to; which is one reason a lot of consumers use debt management services.

Before you call, have a plan. Tally up all of your debts, all of your expenses in a month, including a general “oops” amount, and figure out how much you can really afford to pay. Paying down your debts takes some fiscal discipline; cut back on going to fast food restaurants and learn to cook more vegetables for meals are two surprisingly easy ways to cut back on expenses.

Unless you’re already at least three months behind on your payments, creditors aren’t going to be willing to negotiate a settlement with you; and since so far, you’ve been in good standing they have little incentive to do so. It’s not uncommon to make a late payment now and again and other than paying some late fees or interest payments, there’s really nothing else to it. Consumers typically return to making regular payments.

Know what to ask for when you do call. You can probably get late fees waived. You may be able to get an interest rate reduction. You probably can’t work out some sort of debt annulment program, unless you’ve got a court order assisting you. However, most creditors and collections agents would rather get something than nothing.

If you are dealing with a collection agency, have a copy of your credit report handy. Try to get the final disposition of the debt changed to “settled for less than the total outstanding balance” rather than “did not pay as agreed”. Even better, if you can work out a livable agreement, and pay it off, make sure to get your credit report again and get your creditors to report it as settled.

You might be able to take care of one or even a couple small debt negotiations by yourself – but if you have many delinquent accounts, it can be too much to juggle on your own. However, most people who are in such serious financial trouble that they’re considering debt negotiation have more than one past due account in need of settlement. If you only have one delinquent account, your creditor probably won’t be willing to settle since you’re keeping current with other accounts. Most of the time, professional help is the way to go to get a handle on your debts. A good debt management company is dedicated to helping consumers make wise choices and connect with the most appropriate debt solution to manage their debt.

About the Author:
With over 20 years in the consumer debt consolidation field, Daniel R. Michaelson is one of the leading authorities on Bad Debt Consolidation <http://www.edebthelp.com>.