There are several factors that can identify what creditors will or will not accept as a settlement offer.
Depending on your present situation, one or more of your debts might be settled for as little as 20-30% of your total debts. Or it’s possible that some of your creditors might be so difficult and won’t accept anything less than 60-80% settlement.
However, if you want to enter into settlement for less than the full balance on your outstanding credit card debt, here are some things that you absolutely would need to know before continuing:
- Settlements are only available on unsecured debts like credit cards, medical bills and department store cards as well. Mortgages, student loans, alimony and child support fall into the category of secured debts and there is not much that can be done with these types of debts.
- Settling a debt is not always about what you do know, but often who you know. Getting to the right person and preventing the uncooperative people can make all the difference between settling and not settling debts.
- Creditors and collection agencies are not usually going to write off hundreds or even thousands of dollars without a single fight. So you have to learn having a thick skin and be willing to persevere for several months. How to lose weight fast at home, you need to know how to be persistent to reach your goal. Sometimes, you have to use your fitness tool available with you at home – in this case, your telephone!
- Must use different strategies with different financial institutions and collection agencies to pursue. What works with one, will usually not work with another because of their own policies. In fact, your agreement with one company could trigger a lawsuit with another.
- Most creditors threaten litigation to encourage you make your payments. They are bluffing, but not always. So how do you know whether the threat of a lawsuit is true or not? The past performance of a creditor or collection agency is the biggest determining factor so it’s extremely important to know the “profile” of a particular creditor or collection agency to know if the threat of a lawsuit is legitimate or possible.
- What will you do if one of your accounts is referred to a law firm? Does that mean you are getting sued? Well, not necessarily. You just need to have confidence and approach them in the correct manner so they will help you get your accounts back to being payable.
- IRS Tax Debt – Resolving the IRS Dues that you Owe (2009tax.org)
- Tips on Resolving Credit Card Debts (debt-consolidation-2u.com)