Most folks, much as they believe they would be able to commit to a staunch do it yourself debt settlement strategy, inevitably find that there are more than a few hindrances standing in the way. We certainly understand the temptations to cut out the middleman (and the definite costs these middlemen and women represent) and act as their own spokesperson for their own financial situation. All the same, there's more than sheer laziness or failure of nerve separating the legion American consumers suffocating in credit card account balances from trying their own hand at a do it yourself debt settlement negotiation.

Keep in mind, unless there's total accord between every single unsecured lender to be covered under the fundamental settlement philosophy, nothing will go forward, despite the motivation of the borrower nor the implicit desire of the largest creditors to wipe clean the slates. Sure, it's easy enough to get a lender to drop the penalties that had continued to accrue for every month that the outstanding debt balances law fallow. At an average fee just around thirty dollars per month for accounts whose payments did not arrive on time and a separate fee for accounts over their spending limits (as they soon would be, regardless of the shape in which you'd left them before abandoning plans for repayment), it just takes a few years for a thousand dollar credit card to double in liability to the complete surprise of the account holder.

If that sounds like an absolutely unbelievable abuse of the public trust, regardless of the technical legality of such measures under the fine print of the original lending contract (though recent Congressional legislation has forbidden the more egregious examples), don't worry – no corporate lenders truly hold any illusions that they'll soon be repaid the accumulated charges. Obviously, the creditors wouldn't refuse the largesse from any borrowers so foolish as to simply begin repayment of the entire bill absent the slightest degree of negotiation; the inverse of do it yourself debt settlement which all too many consumers newly concerned with their credit ratings and finally making a decent living nonetheless offer. In fact, though, the ever increasing costs assessed upon the inactive accounts hold two separate purposes, neither of which assume that the consumers once holding the credit card debt will be in any hurry to make good on their unsecured obligations.

First of all, under the (thoroughly reasonable, should you pay any attention to the spiking incidence ratio of defaulted credit accounts) assumption that a majority of the past due accounts left to founder without word from the debtors shall never be retrieved, it simply makes good business sense for the corporate lenders to bloat the illusory size of the account balances so that they may enjoy tax breaks proportionally inflated once the sums have been listed as charged off under the Internal Revenue Service regulations. As importantly, however, the extraneous charges lie in wait as a judas goat for the uninitiated consumers trying a pass at do it yourself debt settlement. Saddest of all, those borrowers who never manage to force a single allowance from the lenders beyond the waiver of these ridiculous penalties may actually convince themselves they've pushed through successful negotiations even though they played right into the creditors' hands the whole time.

Author's Bio: 

Cole Collins is a freelance writer in the field of personal finance with a concentration in consumer debt relief. For help with debt relief please visit