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Today's hard times are causing millions of people to stop and look at their financial situation. They are also causing the United States about a trillion dollars. Debt settlement is an option for many people but not everyone and it is possible to do this yourself.

If you can no longer pay even the minimum on your debts it's time to look at your options. First figure out the total amount you are in debt and break that down into different types of debt, credit card, mortgage, school loans etc. Then get a copy of your credit report. This is easy to do and free for the most part if done on line. Get reports for the three big bureaus, Equifax, TransUnion and Experian. These will tell you if your account is still with the creditor or if they have turned it over to a collection agency.

From your previous list of debt amounts you know who you owe the most to, contact them first. You can do this either by letter or phone. It is actually better to send a letter by certified mail so you can attach any other needed information such as a budget or payment plan you would like to offer. Some important facts are knowing which creditor to pay first. This is the one you owe the largest amount to, not the one who calls you most aggressively. Make sure you do not offer an amount you cannot afford and don't say you will pay what you can. Creditors don't consider that a commitment. Many are actually happier if you guarantee payment of a smaller sum rather than larger which you may not be able to actually pay. Do not send them ANY money until you get an agreement in writing. Don't apply for new loans or credit cards without the creditors approval.

When trying to contact a collection agency to work out a repayment plan much remains the same as above. Write a letter, never call a collection company as the agents only want to collect money they have no interest in settling you debts. Get you contact details as above. If the agencies are making harassing calls sent them a cease and desist letter by certified mail, get a return receipt, and ask them to not contact you.Once they get the letter, they may only contact you to inform you of legal action they are taking. Do not try to negotiate with a collection agency by phone and as above keep you temper in check. If when you do get calls from a collection agency, even if there is a mistake and the debt is not yours speak to them and ask for debt validation letter, which makes them prove the debt is yours. If you do not speak to them they might get a court judgment against you.

Sometimes a creditor or collection agency might contact you and offer a debt settlement plan. Most creditors and collection agencies do not accept an amount lower than 30%-50%of the original balance. If you get an offer like this grab it. Once you do though get everything in writing, in detail.

All in all, by researching and then comparing not one but many debt settlement agencies, borrowers will be able to identify the one that meet your financial situation properly, moreover, besides the cheapest interest rate the market of debt consolidators is offering. For example, read our latest debt management service review: Lower My Bills Review.

Nevertheless, it's advisable going with a trusted and reputable debit counselor before making any decision, this is the way you save time because of seasoned advise and cash by obtaining the best results in a reduced period of time.

H. Milla is editor of the Get Rid Of Credit Card Debts website – by visiting you can see his best ranked debt settlement service recommendation.

Find online debit settlement tips and bad credit debt management advise. Visit for further information.

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Tags: debt management, debt relief, debt settlement, settling debts