The savings account is held with an FDIC-insured financial institution. Credit card debt and credit card companies are leading the way in creating debts that people must pay off. If you fall significantly behind on a credit account, it is possible that the debt may end up in debt collection. Sometimes a creditor allows a payment schedule.
These averages don’t include the fees you pay for debt relief, so the actual amount you pay is likely to be higher.
Are
collection agencies content with 30%
If you
need help preparing a settlement proposal, get Nolo’s eForm offer to settle debts with a reduced lump sum payment. While there is no hard and fast rule for reconciling debts, they are usually settled based on a percentage of the total amount you owe. If the creditor is flexible, they may be willing to accept a settlement below the full amount to avoid trying to collect the whole thing for months to no avail. With over 21 years of experience across the country, CuraDebt has helped over 300,000 clients consolidate their debts and avoid being settled by collection agencies.
What percentage should you offer to pay off a debt?
Original creditors will generally not accept an offer of less than 70 to 90% of the remaining amount owed unless the offer is made as part of a formal debt settlement program. Now you have to decide whether you want to go to a debt settlement company or simply pay yourself. This percentage fluctuates based on various factors, including the debtor’s financial situation and cash position, the age of the debt and the creditor concerned.
References:
- https://www.consumerfinance.gov/ask-cfpb/what-is-the-best-way-to-negotiate-a-settlement-with-a-debt-collector-en-1447/
- OOPS!!!
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.