Posted on
February 19, 2010
at
1:23 am
Let's discuss (credit card) debt settlement offer here - how does this begin?
Posted on
February 19, 2010
at
2:17 am
If you have decided that it's debt settlement that's going to solveyour credit card debt problems - but do not know how to startmaking an offer to the creditor/collection agency - maybe you shouldstart reading this FTC article first -
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm
Posted on
February 19, 2010
at
2:37 am
Another good question to ask is
what would be considereda favorable credit card debt settlement offer?
Posted on
February 19, 2010
at
5:30 am
If the consumer is enrolled ina debt settlement program, expect the average settlement offer to vary. If the consumer entered the program with his accounts still current, the likelyhood of getting a favorable settlement offer is low. The reason for this is simply because the creditor doesn't have the incentive for settling for less than the full amount. Also if the the enrollment is new it is unlikely that the consumer has already accumulated enough funds to settle/negotiate for his account.
Posted on
February 19, 2010
at
6:31 am
Credit card settlement offer with a third party collection agency is somewhere between 35-75% I heard.
Posted on
February 19, 2010
at
6:33 am
And speaking of incentives - unlike the original creditors,who probably would ask you for 75% right away having not an incentiveto settle for less than the full amount, the collection agencygot that bad debt for pennies on the dollar. At that point, the collection agency or bad debt buyer has incentive to settle for a really low percentage because they will still make a healthy profit because they have purchased the debt for so cheap.
Posted on
February 19, 2010
at
6:34 am
so which do you think is the better choice for the consumer in terms ofgetting a very good settlement offer for his credit card debt (d.i.y. or professionaldebt settlement?)
Posted on
February 19, 2010
at
6:42 am
I think it's a matter of preference or need. If the consumer is confident enough tonegotiate, have read through some resources online..have bought books/programsby the celebrated gurus ..then he could probably land a good deal ...the only catch is-the negotiators over at the settlement company have been dealing with almost all if notall of the creditors/collection agencies out there -- they have an inside track asto the temperament or trend that the industry is going through..my vote goes to professional debt settlemnt
Posted on
February 19, 2010
at
6:44 am
if the consumer has 75% of his debt amount ready to be given to creditor -and his account hasn't yet charged off (still current) then perhaps a d.i.y.settlement is best for him. he doesn't have to pay the settlement company anything ifhe's able to get the creditor to agree to that amount.
