How to Make a Debt Settlement Offer

A debt settlement offer is when a consumer makes an offer to a creditor stating that he or she will pay a percentage of the money that is owed on a debt. If the offer is a fair and reasonable amount, many times the creditors will agree - if they do, they will at least receive something owed on the debt rather than nothing. This article discusses three different ways in which you can make a debt settlement offer and reduce your debt.

Instructions

1. Have a Lawyer Make a Debt Settlement Offer on Your Behalf. If you like, you can hire an attorney who will make an official and legal debt settlement offer on your behalf. He or she will look at the current balance you owe on the debt, how long you have had the debt, what the interest is and much more. With this information, they can help you determine a fair and reasonable amount to offer for settlement. The lawyer will then usually present the terms to the creditor and he or she will either accept or deny the settlement offer.

2. Hire a Debt Settlement Company. Most people who have more than one debt to settle can benefit from hiring a debt settlement company. Basically, the debt settlement company takes all of the bills you owe on and that the interest is racking up on and tries to eliminate those debts. The company will approach the creditors with information about the debt and an offer which is less than the payoff price. Usually, this is after a customer has stopped paying payments - as companies will not typically lower the amount if it is still being paid for. The debt settlement company can do this for all of your debts and help you pay them off. This is a great way to repair your credit if it has been damaged by several payments or debts.

3. Make a Debt Settlement Offer Yourself. With just a little bit of information, you can make a debt settlement offer yourself and avoid paying for a lawyer or settlement company to do it for you. You would typically list the bills you owe, the amounts you owe on and what kind of interest it is charging you. Once you have this, you can determine a nice and fair amount of payoff for the company. Usually, the payoff is anywhere from 20% of the original debt to 60% of it. Of course, this may change depending upon what creditor you're working with and the amount of the original debt.

   You then present your offer to your creditor and then wait for them to accept or counter the argument. If the creditor agrees, then you must get their acceptance in writing. Once you do, you will remit the settlement payment to them by certified check or money order. After the settlement amount is made, the charge will come off of your credit or personal information.

4. In conclusion, it is easy to feel as if we're drowning up to our eyeballs in debt however, there are choices. Offering a debt settlement amount is a good idea! Simply use the information in this article to help you determine a debt settlement offer that will work for you and get those creditors off your back - whether you hire an attorney, a debt settlement company or simply do it yourself!