Posted on
February 2, 2010
at
3:12 am
What are the odds/chances of settling a bad debt?
Posted on
February 2, 2010
at
3:23 am
What are the odds/chances of settling a bad debt?Were you seriously asking for the mathematical figure ... if so, I can't help you, but I can say that the odds of settling a bad debt with the original creditor are pretty high. Creditors having have a deadline of 6 months to collect (full) on a debt, would of course, prefer to not settle on a lesser amount.
Posted on
February 2, 2010
at
3:54 am
I agree settling a bad debt is usually done with a third party collection agency -- it could also done with the creditors & their lawyers (if they sue you before they have to write the debt off).The collection agency knows that about 25% of that total unpaid debt was caused by interest rates ... so the chances of settling with a collection agency? High.
Posted on
February 2, 2010
at
3:56 am
so how does this commence? who contacts who first? can you give some basic negotiating tips?
Posted on
February 2, 2010
at
4:11 am
Well if you miss a payment, you'd get calls from your creditors -- if you're not able to respond or meet their demands, they'd sue you. They'd, of course, give you time to respond -- if you, for some reason, failed to do that, you might get what they call "a default judgment" -- or you can try to settle with them right there.
Posted on
February 2, 2010
at
4:13 am
If, however, your creditors are not the aggressive to sue - type, your account goes to a collection agency (in about 6 months time) - you'd get calls from them. Aggressive calls.
Posted on
February 2, 2010
at
4:19 am
What are the odds/chances of settling a bad debt?I agree, and that is the part where your chances of settling your bad debt becomes high, - it's just a matter of - for how much are they willing to settle your debt for - & not whether or not they will anymore.
Posted on
February 2, 2010
at
4:31 am
If you are doing a d.i.y. debt settlement you usually start on a high offer -- 75% off of your balance perhaps? They would refuse that anyway, and you might end up with 35% ... I really am not sure, perhaps the lurking debt gurus could help us ...If you don't want to go through negotiations yourself - you can enroll in a professional settlement program.
Posted on
February 2, 2010
at
4:33 am
If you're wondering just how much settling a bad debt would cost you -- settlement companies usually charge 15% of your total debt amount (spread over 18 months) or they'd ask for 20-25% of the settlement amount.When you talk to them, don't forget to ask about their fee structure. You don't want to be surprised and feel played once you find out that the first few months of your payment - go to the service fee - and not yet to your creditors.
