You can definitely attempt to settle with your creditors without going through a debt settlement company / agency. In most cases, debt settlement companies do NOT get any special treatment from any creditors, not even the credit card companies.

Before, you call up your different creditors and credit card companies, it is important to know what is the maximum lump sum payment or monthly payment that you can afford to offer them. If you are offering a monthly payment, you should also be prepared with the exact timeframe for which you can sustain making that payment. It is important that you do not agree to any settlement terms that you cannot realistically afford.

The advantages of using a debt settlement company are:

• A debt settlement company is likely to know which creditors are more inclined to settle and for how much.
• A debt settlement program will provide you with the discipline to save money every month that you can use as leverage when negotiating. Remember that no creditor will want to make a deal with you unless you are ready to make a lump-sum payment.

The disadvantages of using a debt settlement company versus negotiating on your own are:

• A debt settlement company will charge you a non-refundable fee for their service.