If you’re knee deep in debt you may have been looking different solutions to help you get debt free, however one big controversy has always been whether you should try getting out of debt yourself or whether you should employ the help of a professional? So in this article I’m going to cover benefits and disadvantages of each.
First off if you’re considering a do it yourself debt settlement plan such as the Dave Ramsey plan you will learn that most of the effort to make things happen will come from you entirely. This means you will be responsible for every action you take since you won’t have some working with you to get you out of debt. On the flip side thought consider that the do it yourself option is a much cheaper option than hiring a professional. In fact to get started on the Dave Ramsey plan it will only cost you the price of a text book.
Now let’s consider the other option of hiring a professional debt negotiator to put a debt elimination plan together for you. With a pro on your side he will be able to consult your creditors and work out a payoff deal that will be a win/win for everyone involved. This is something hard for individuals who are doing their own debt plan because most debt companies have a working relationship together and will be more willing to make a deal with them. However their are some downsides to working with debt negotiation companies such as the fee’s they charge. Often times debt companies will charge 12% to 17% of the total debt placed in the plan. On top of that professional debt plans can also have a negative effect on your credit score but if your in a severe debt situation chances are your credit is already ruined.
In the end is it better to run your own debt plan or is it better to get a pro to help you work through your differences? If you can handle the challenge of doing things on your own the do it yourself option may just be for you, but if you are the type of person who gets frustrated or scared at the first sign of trouble it may be better to hirer a pro in the end.
Related posts: