You are in debt, and you know you need help.
You hate the idea of borrowing from friends and families and have decided to pull yourself together, even if it is more complicated.
After a lot of research, you find tons of companies, services, and debt consolidation programs.
The question is, can you consolidate your debt yourself?
The answer is an emphatic, yes! Every debtor can consolidate his debts.
It is just a process by which you request better payment terms from your creditors, including late payment penalty and lower interest rates.
Most lenders also agree to provide better terms if you negotiate debt consolidation with them.
The main reason is that if you file for bankruptcy, unsecured creditors – like credit card companies, will receive nothing for the loan.
So, most are willing to offer better repayment rates to ensure that they get their loans back.
In principle, most creditors are willing to offer better payment terms for people in the debt cycle.
But the actual negotiation process may not be that simple, because you were dealing with a group of debt collectors with extensive collection experience and trained to get the most out of you.
It is often more comfortable to say than to do – debt consolidation negotiation requires that you have right or excellent negotiation skills to get the most out of debt consolidation.
It is also imperative to know your results and your bargains.
It is, therefore, not surprising to find that third-party debt consolidation companies generally get better terms and rates for debt consolidators.
The reason is that these companies are more familiar with the creditor’s debt settlement policies and know how to use them to their advantage.
Conclusion You can consolidate your debts on your own and save on debt consolidation fees. But, most of the time, you will not get the best repayment terms and rates than if you hire the service of debt consolidation companies.