DIY vs. Using a Debt Relief Company
DIY vs. Using a Company at a Glance
DIY
- Cost
- No service fees
- Time Investment
- High, you handle all negotiation
- Negotiation Leverage
- Depends on your comfort and skill
- Complexity
- Manageable with 1-3 creditors
Using a Company
- Cost
- Performance-based fee, ~15-25% of enrolled debt
- Time Investment
- Low, they handle communications
- Negotiation Leverage
- Established relationships, volume experience
- Complexity
- Better suited to many creditors/larger debt
What a Company Typically Brings That DIY Doesn't
Established negotiation relationships and experience across many accounts, plus handling the back-and-forth communication with creditors, balanced against the fee you pay for that service.
What DIY Offers That a Company Doesn't
No fees and full control over every decision, balanced against the time and negotiation comfort it requires. See Settle Debt Yourself and DIY Debt Settlement for the tactical depth on going it alone.
As a rule of thumb, DIY tends to work best when you have just one or two creditors and feel comfortable negotiating directly over the phone. Once you're juggling five or more accounts, or the thought of negotiating makes you want to avoid the calls altogether, a company's structure and experience often earns its fee back through consistency alone.
Results vary based on individual circumstances. This information is educational and not a guarantee of outcome. Consult a certified credit counselor, attorney, or financial professional for advice specific to your situation.