Can I negotiate an unsecured debt settlement on my own without using one of those bogus debt settlement companies?

I am not licensed in your state but I can offer you some general advice.

YES!!!!! This is a great idea. I often tell clients interested in this type of service to save their money and do it themselves.

You should consult a local attorney who will be able to address you specific case and your state’s laws.



Good luck.



Robert Kovacs

Avoid the debt settlement companies like the plague of locusts that they are. NONE of them are worthwhile.

Among other things, some of the major credit card issuers IMMEDIATELY file suit if they receive a letter from a "debt settlement" company.

You can probably do at least as good of a job on your own and without paying unnecessary charges.

Use a portion of the money you saved to pay an experienced CPA or tax attorney to discuss your situation and possible tax consequences of your proposed course of action.


Based upon your question, I assume (but do not know) that you've discussed bankruptcy with an attorney before deciding that you do not want to file or are not currently eligible to file. If not, do so.

I agree with my colleagues, this is something you should do yourself. But be forewarned, what you may have heard about credit card companies taking pennies on the dollar may be exaggerations. Ask yourself, if it that easy to get out of debt, why doesn't everyone do it? Be careful about making low ball offers or threats or you may find your account in immediate collections. But you may be able to mitigate ongoing interest charges at the very least.

Ten cents on the dollar is likely way too optimistic, especially with an original creditor versus a junk debt buyer. However, by the time it gets to the junk debt buyer it will have so much ratejacked interest and fees that a lower percentage (say 30% to the JDB) will be essentially the same money or a little more ... just a bit further down the road.