What should i offer in settlement of a debt?

Answer 1

.10 cents on the dollar or 30 % of the balance owed. If you encounter a difficult negotiation settlement with a creditor then the max that you should offer is 50%. Believe me when I say this, you have the upper hand when it comes to this situation. So, negotiate, negotiate, negotiate... Get everything in writing after the agreement before you make a payment, then request another letter stating that the account was "Paid in full". This will help increase your credit score, and avoid the remaining balance being sold to another collection agency.

Good Luck!

There is no "one size fits all" in debt settlement or dealing with debt. Many debt settlement companies just don't get it. For example, if a debt is time-barred, why offer anything? Even 30% is a terrible settlement of a time-barred debt. Likewise, if you have a good unfair debt collection counterclaim, you may be entitled to a substantial set off or cancellation of the alleged debt completely. If your only income is social security or other exempt funds, you have no other non exempt assets and your credit is hopelessly trashed, why offer anything? You are probably judgment proof.

If debt settlement is not going to get you out of debt for many years, maybe you should be looking at bankruptcy and rebuild your credit by starting over. Many financially successful individuals are just that because they filed bankruptcy. Donald Trump didn't solve his financial problems by working with a debt settlement company.

On the other hand, if you have garnishable wages or bank accounts and you have just been sued, a 90% settlement may be a good deal if it avoids an inevitable judgment, garnishment and damage to a credit score you need to protect.

Debt settlement helps you in reducing your credit card debt & other unsecured debts. yourdebtfreeadvisor.com provides credit card debt settlement,tailor made plans for debt negotiation and giving you relief from your debts & taking the financial burden off your shoulder.