Debt Settlement – What Percentage of a Debt is Typically Accepted in a Settlement?
When it comes to debt settlement, people are usually very concerned about the percentage of the debt that they are supposed to pay off in order to settle their debts. A brief overview in this regard is given below to help you understand how the debt settlement system actually works. First, you need to consider the following things to understand the driving factors involved in debt settlements
The first and foremost consideration in debt settlements is the creditor themselves. Different creditors have different policies when it comes to debt settlements so you have to check them out before pursuing this option. Secondly, your credit score plays a very important role in case you are seeking a debt settlement. Finally, you also need to figure out the legal status of your debts in order to make sure you are good to go through with debt settlements and there are no law suits hanging over your head. When you are all set to opt this choice, it is time to learn about the relief you are supposed to get on account of your settlement.
The top tier negotiators are usually able to get their clients some good debt settlement deals where they may have to pay off the below mentioned percentages in order to settle their debts:
- 40% pay off for department store/credit cards
- 65% pay off for Citibank accounts
- 65% pay off for Discover accounts
- 50% pay off for cell phones
- 40% pay off for apartment leases
- 50% pay off for medical debts
- 80% pay off for repossessions and garnishments
- 40% pay off for signature and pay day loans
- 40% pay off for collection balance over $750
- 80% pay off for collection balance below $750
- 60% pay off for debts in between $0.75K to $1K
- 80% pay off for debts below $0.75K
The above mentioned pay offs only define the usual percentages accepted by various creditors on account of debt settlements. Before signing up for any deal of such sort, it is advisable to carry out your own research in order to be absolutely sure about it.