Whether you’re dealing with a collection agency or the original creditor, you may be able to save money with a debt settlement offer. Before you start negotiating with your creditors, make sure you understand what you’re getting into. You can make a lot of money from a settlement, but you can also lose it. If you’re considering this option, make sure you research companies, read reviews, and make sure you’re prepared for the worst.
The debt settlement process can be long and complicated. Depending on how big your debt is, it could take months or years to settle. If you’re dealing with a collection agency, you may not even need a third party to handle the paperwork. If you’re the type of person who prefers to deal with people, it’s possible you can negotiate with your creditor on your own.
The best way to start is to put together a list of your past-due accounts, with the corresponding amounts behind on each one. This will allow you to make a better offer when negotiating with a creditor. It also allows you to get the ball rolling.
You should also consider the statute of limitations on your debt. The shorter the statute of limitations, the better your chances are of getting a settlement offer accepted. It’s also a good idea to research the best companies to work with. They can be found through third party review websites such as the Better Business Bureau.
To find out the real cost of debt settlement, you’ll need to find out your total outstanding balance, including any fees that may apply. Then, you’ll need to decide how much of your debt you can afford to pay off. It’s likely that you won’t be able to pay it all off in one go, so you’ll want to spread out your payments over several months.
For example, if you owe $10,000 on a credit card, it might make sense to pay that amount off in six months. You can also save your tax refunds to help build up a settlement fund.
It’s also a good idea to make a list of the most important debts you need to settle. You can do this on your own, or you can hire a debt settlement company to handle the job for you. When deciding which debts to settle, you’ll want to consider your financial situation and the age of your account. Older debt has a better chance of getting a settlement, while younger debt isn’t as likely to do so.
It’s not uncommon for a creditor to send you a debt settlement offer, even if you’ve never contacted them. This is because they’re trying to collect as much as they can before the statute of limitations expires. In exchange for accepting their offer, the creditor will report that your debt is paid in full. That’s a great way to boost your credit rating, but it can be a risky move.
Debt Settlement Offer – How to Make a Good Debt Settlement Offer was first seen on Apply for an IVA