subject: Cut Credit Debt by 50 Percent - How to Make a Good Debt Settlement Offer [print this page] If you read the success stories of people who have been able to reduce their debts by half through debt settlement, you feel motivated to use this option to come out of your debts. The good news is that if you have at least ten thousand dollars in your unsecured debts then you can avail this option.
However, one has to keep in mind that the debt settlement offer depends on various factors. The common factors which will count during your negotiation are your financial condition, the age of your debt and some other factors. So, don't get too greedy but put up your best negotiation skills. A better option would be to hire a reputed settlement company to negotiate on your behalf. Many because they are good at it and have a lot of experience and expertise in handling settlement negotiations.
In order to get a good settlement offer you have to understand as to why a creditor agrees to settle a debt in the first place. The creditors will not want to hear about settlement if they are receiving regular minimum payments on that account. Only when the account is about to be sold to a collection agency or if the consumer is on the verge of filing for bankruptcy do the credit card companies agree to settle the account. Under both these conditions the creditors stand to lose all or most of the money which the debtor owes them. Settlement provides the creditor an opportunity to get back a certain percentage of the money back.
A debtor needs to capitalise on this to get a good settlement offer. The best of the negotiators can get 40 % to 60% of the debt waived off in the settlement offer.
Cut Credit Debt by 50 Percent - How to Make a Good Debt Settlement Offer
