If you are thinking of settling debt on your own then the first thing you should know is your creditors are not legally required to help you. They have a right to decline your offer and make you pay your dues in full. However, you should also know that creditors only want their money back, regardless of the amount so if you can prove your case without a reasonable doubt, then they just might agree with you.

If you are attempting debt negotiation on your own, without any help from the professionals or lawyers then you will need the following to get started..

To do this, you will need the following items:

• A filing system for your correspondences
• Money to pay the debt up to 80%
• The terms and conditions of your debt
• Your credit report
• The means to write and post your correspondences

You can start by:

1. Knowing everything there is to know about all the fees related to your debt and the interest rates.
2. Finding out how much you actually owe all your creditors. Make sure to keep the information separately so that you do not send the wrong correspondences to your creditors.
3. Now that you know how much you owe, try to gather about 70-80% of the total amount of your debt. Borrow from family or your savings account if you have to. You need to save a high percentage of the amount you owe as creditors normally will not take you seriously if you offer a low amount of if you want to pay them back in installments.

   Why? Paying an amount too low shows that you are not taking your responsibilities seriously while paying in installment would not work as you cannot even manage to pay your original debt in installments.

4. Start writing your letter, explain your situation and why you need their help but keep your letter short and simple. No one wants to read an essay on your economical situation. Highlight your proposed offer but make sure it is reasonable. You could get a lawyer to read through your letter just to make sure it says what it should without incorporating any unnecessary information.
5. Make sure that your letter gives them an impression that you are relying on their help. There is no need to be rude or arrogant. You are in a bind and you need help, there is no shame in admitting that. Finish off your letter with a sentence that would make them come back to you with an answer or decision, again, do not intimidate or threaten them with filing for bankruptcy. Your plan might backfire, and your request might get rejected if you do so.
6. Send off your letter to them but make sure you keep a copy of the correspondences and proof of postage in the file you have prepared for easy reference.

Once you get a reply from your creditors either by phone or mail, and if they agree to help you, always make sure you get everything in writing. If they agree to settle, get it in writing.

Do not pay them until you get all the information you need and you have clearly understood their terms.

It is always better to be safe then sorry. If this method does not work the first time, keep trying and do not give up so soon.