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Settle Debt for 25% or Less

The solution unsecured debt no more than 25 percent of the balance will require some shrewd negotiation. After all, agreement could result in a whopping 75 percent savings for those potentially big business to profit and loss for the creditor. However, the credit card companies and other creditors are often willing to try, as New York Times in 2009.

newspaper said card companies come were settling delinquent debt for as little as 20 percent of the balance. Find out how much you owe on your account to obtain recent bank statement. If it is very old debt, review your credit report for balance, along with contact information.

Settle Debt for 25% or Less

Get free copy of your credit report from Annual Credit Report see Resources –a website setup to issue free reports as required by federal law. View your credit report to determine date of last payment. Generally, credit card companies and other creditors will not consider settlement agreements until you fall at least three months behind.

Usually after six months companies will close your account and sell it to debt collector. Call your credit card company or debt collector when you are at least three months behind. Ask when account is scheduled to be charged off.

Settlement offers can change as account becomes more delinquent, and your negotiating leverage improves as card company nears its internal deadline for resolving delinquent account. Make second call to your card company when you are two weeks away from account being charged off. Offer to pay 20 percent of balance.

creditor may counter at say, 50 percent. Politely end conversation and call back next day. Stand your ground until last business day before your account is scheduled for charge-off.

Then offer to pay 25 percent of balance. Some card companies may allow you to pay settlement amount over 90 days, with first payment due in 30 days. Get everything in writing.

Go on to next step if you’re settling really old debt held by debt collector. Save enough money to offer 25 percent lump-sum payment. Many of debt collectors will want lump sum or will try to get you to pay larger amount in exchange for payment arrangements. Call debt collector and tell him you have come into some money and can settle account for 25 percent of balance.

Make agreement and get details in writing. Then make payment to settle account.

We hope this information about “How to Settle Debt for 25% or Less” is really helpful to you as well as other information related to Debt

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How to Settle Debt for 25% or Less

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