Do It Yourself Debt Management Plans
A solid debt management plan is something that individuals put together in order to persuade creditors that they deserve a bit of relief under their current plan. For most people, financial trouble can bring about the need to get in touch with these creditors and work directly with them. There are a couple of different ways to draft this type of plan and some people choose to do it themselves. Others are more comfortable working with a debt counseling company. For those people who want to put something like this together on their own, there are some steps you need to follow to give yourself the best chance of success with this type of approach.
Putting Together A Statement Of Affairs
The first part of the process is one of the most important parts. Debtors have to prepare a statement of affairs to send out to all of their creditors. This statement is basically your note of financial standing and it lets the creditors know just what you are capable of pulling off, given your current situation. The important thing to remember is that this needs to include all of your current assets, all of your income, and all of your expenditures. When putting down all of these things, you have to be completely honest, because the creditors will be likely to reject the offer if you are not completely honest in your approach.
Getting Your Balance And Drafting An Explanation
Having these debt management plans approved is not a cut and dry process. Instead, you will need to do everything in your power to make sure that the creditors understand the situation. You should write them asking for a current and accurate balance, and the letter should also include details about your current financial situation. It is important to write all of your creditors and the explanation needs to be spot on. Let them know the reason for your financial distress. Be honest, but the goal is to make the creditors feel come sympathy towards you.
Putting Together An Offer Letter
When you get the information from the creditors, you will be able to revise your current statement of affairs to include exact measurements of what you can offer. You will need to put together something that follows the proper form. Make sure that you let them know what you can offer, given your current statement of affairs. From here, the ball will be in the court of your creditors and you will have to wait to hear back from them on whether or not they accept the plan.
When you make this offer, you need to ensure that you set up direct debit for all of your creditors. This way, the payments will go to them automatically and they will have assurances that you are going to make payments in the stated amount and at the time you tell them. This is quite important for those people who want to have their settlement offer accepted.
Benefits Of Using A Do-It-Yourself Debt Management Plan
- Save money over using debt counseling services
- Get relief from huge debts that you otherwise might struggle to pay
- Set up something directly with creditors that works for all parties involved
- Get more organization in terms of your own financial situation so that you can improve budgeting in the future