What percentage should I offer to settle debt?
Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.
What should a debt settlement letter include?
Debt settlement letters with original creditors and debt collectors are typically a standard form that will consist of the following:
The creditor and/or debt collectors name. The date the letter was drafted. Your name. Your account number.
What is debt settlement contract?
A debt settlement agreement is a contract signed between a creditor and debtor to re-negotiate or compromise on a debt. The debtor offers a payment that is less than the outstanding due (usually between 50% to 70%) if the payment can be made immediately.
One of those factors is the ability to prove liability on the part of the defendant who is offering to settle the case. Another factor is the ability of that defendant to prove that another party or even the plaintiff himself is partly responsible for the injuries in the case.
The short answer: Yes, debt settlement is worth it if all of your debt is with a single creditor, and you're able to offer a lump sum of money to settle your debt. If you're carrying a high credit card balance or a lot of debt, a settlement offer may be the right option for you.
It is always better to pay off your debt in full if possible. While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative.