Debt Settlement DIY or Hire The Guy

If you are new to the blog, click HERE to start at the beginning of my story.

Should I do it myself or hire a company?
At first I thought, if I can’t manage my finances, how can I handle the debt settlement process?  After more research, (am I getting my point across about research? :-)) I realized there were several good reasons for DIY.

  1. The banks respond to real people and their authentic story.

  2. ?

  3. Why should I incur MORE debt by hiring someone? Won’t the bank ask why I am paying someone $10k but not paying my $10k credit card bill?

  4. ?

  5. I decided to take control of my life. Why would I HAND OVER CONTROL to a company I hardly knew?

  6. ???

  7. It didn’t seem difficult.

  8. ??

I almost went with Credit Solutions. They tried to hard sell me by saying they had an advantage because they negotiate a huge amount of debt with banks. They also have relationships which makes the process easier.  The bulk debt reason, I understand. Relationships with the bank??  Wait a second?
At Credit Solutions, the client pays a HUGE upfront fee based on total debt. What is their incentive to get a better deal for the client? Since the bank is their primary relationship, won’t they pad the in favor of them?
People! Don’t fall for it!!!
There is so much information out there. Granted, it can be overwhelming. As such, I chose a cross between DIY and hiring a company.
With Consumer Recovery Network, after you purchase the DIY CDs for $495, and pay $100 per account you enroll,

CRN charges only $50 per month for unlimited phone and email support.

I know it sounds crazy, and you’re probably thinking I am just selling you here, but it’s true.

  • $495 for the DIY CDs
  • $400 to register my accounts (4 accounts at $100/each)
  • Total upfront fee: $895.

Each month I paid $50 and if they had to step in to negotiate for me, ALL the fees thus far would be applied to their commission.  Let me tell you, this is a steal. My first call with my CRN counselor was 3 hours long! I spoke to her again probably 4 more times that month and exchanged over 20 emails.
For $50/month I got:

  1. Unlimited phone and email support.

  2. ?

  3. Training on the language to use when speaking to the bank.

  4. ?

  5. Coaching on making my phone calls at specific times during the month – YES THAT MATTERS A LOT!!

  6. ?

  7. Advice on how to structure the negotiations in a way that allowed me to leverage my hardship position.

I am a big fan of this hybrid. You have complete control of the process, but if you get stuck, you have a bailout.
Jonathan Grossman

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