NewswireToday - /newswire/ -
Dallas, TX, United States, 2006/08/14 - Consumers can negotiate debt settlements directly with creditors and save thousands they would otherwise spend on professional debt settlement service fees. However, the do-it-yourself approach is not for everyone.
Executives at the National Financial Awareness Network, a Dallas-based financial literacy company, are encouraging consumers considering debt settlement to weigh the benefits of negotiating directly with creditors versus hiring a professional debt settlement company.
Debt settlement is a bankruptcy alternative where a consumer who is experiencing financial hardship sets money aside for paying off each debt once a creditor agrees to reduce the balance, enabling the consumer to satisfy the debt according to his or her financial ability. While the professional debt settlement services industry is new, the debt settlement concept is not.
“People have been settling debts for thousands of years,” said John Janney, president of NFAN. “Things have only gotten easier for consumers with the advent of fair debt collection laws and the realization that it is better for banks to settle for something rather than lose the entire debt to bankruptcy.”
Many creditors send automatic settlement offers to customers who are falling behind with their payments. These offers are part of the creditor’s efforts to recover funds from potentially unrecoverable accounts. Such settlements serve a vital economic function because they help businesses with revenue while also helping consumers alleviate debt burdens that often cause tremendous stress, family discord and negative cash flow.
Professional debt settlement services may not be available for residents of some states because of restrictive state regulations, such as fee caps, and many debt settlement companies do not provide service for people with less than $10,000 of unsecured debt. A do-it-yourself debt settlement approach may be the only debt settlement option for these consumers.
Janney said that, with the right information, consumers can negotiate directly with creditors to settle their debts. While he admits this approach may not be for everyone, he encourages people interested in debt settlement to first explore the do-it-yourself debt settlement option as well as other legitimate debt relief options. Financial wellness, he explained, requires that consumers become well-informed.
“You should be weary of companies that advise you to stay away from legitimate debt relief options that they do not sell because these companies should be putting the consumer’s financial wellbeing first and foremost,” Janney explained. “For only about $150 you can purchase a do-it-yourself kit that will provide valuable information and the understanding of the debt settlement process you need to make a well-informed choice when looking to hire a professional debt negotiation service if you later decide that the do-it-yourself approach is not for you.”
NFAN publishes the popular “Do-It-Yourself Debt Settlement Kit” that includes a five-hour audio seminar and workbook. The audio seminar explains debt settlement as well as other debt relief options. The kit also provides a formula that consumers can use to help them determine which debt relief method to seriously consider. NFAN sells the kit through its website and through debt settlement companies that want to provide non-qualified and non-interested debt settlement applicants with the do-it-yourself option.
The National Financial Awareness Network, Inc, is a Dallas-based financial literacy company that offers educational products and services related to personal finance. NFAN recently launched the HelpForDebtors.com website to provide information about state and federal laws related to fair debt collection.