If you’ve made the decision to self-negotiate a debt instead of hiring an attorney or a debt consolidation company to do the work for you, here are a few tips and steps to get started. Remember that creditors may not be legally required to help you out, but if you prepare your case and have money in the bank to achieve the settlement, creditors may be encouraged to work with you.

Research the terms and conditions of your debt. Know the fees, surcharges, taxes, and interest rates that apply. Annual processing fees may be associated with the debt. Tally up your total amount owed, including fees and taxes.

Gather together enough funds to settle. The money is not to send with your letter, but for giving more weight to creditors for consideration of your request. You don’t have to pay out the full amount of the debt, but be sure you have at least 70% to 80% of the balance. Creditors won’t take you seriously if you offer too little or if you offer to pay in increments.

Make your settlement request in writing. Make your first offer reasonable but relatively low so you can climb up if the creditor denies your request. If possible, have a lawyer or at least a debt negotiation counselor look over your letter to check for any inconsistencies or unnecessary items.

If the creditor agrees to your request, pay promptly and get written confirmation of the receipt of payment. If the creditor wants to meet you halfway, talk to your debt counselor to see what’s fair.

If your creditor clears your debt, make sure that the clearance appears on your credit report within two to three months.