Everyone has seen an ad on the television from a debt settlement company promising you that they will do what no one else can; settle your outstanding debt in a quick and easy way. What they don’t tell you is that you can do all of that on your own without paying those debt settlement companies a single dime.

You see, everything that these settlement companies do can be done by you with just a little bit of preparation and some research online. The best thing is that it won’t cost you anything in the process and you will get your debt paid off quicker.

Debt Settlement Companies work like those best payday loans that you see on television. They figure out what your monthly bill is going to be to them and they take the first several months’ worth of money to pay for their services. Payday loan companies charge extremely high interest rates so that they make money. In the long run, you are paying much more than what you can settle your debt for by using a settlement company. They might do some of the work for you, but is it really worth paying them that much to do what you can do?

The first thing you are going to need to do is figure out your monthly budget. Take all of your necessities and write down how much they are. This will include your rent or mortgage, utility bills, food, and such. Once you have that number, you will multiply it by around 1.2 to get a finalized budget. This will give you a cushion of around 20percent to help you pay your debt off. You should also be aware that you won’t be able to settle your debt if you are currently making payments to your debtors.

Once you stop paying them, they will start calling you to settle your bill. This is when you start your negotiation tactics with them. Most will settle for a lump sum payment that is high enough to cover their costs but low enough that you can afford. That 20 percent cushion then comes in very handy for paying off larger debts once and for all so that you can be free to live life.