Most successful debt liquidations will reduce your debt by 30 to 50%, but the amount you can offer depends on factors such as your unique financial situation. If you're struggling with the burden of high-interest debt, liquidation can be a valuable tool for recovering, but it's not something you should rush into blindly. Most successful debt settlements will reduce your debt by 30 to 50%, but the amount you can offer depends on factors such as your particular financial situation, creditor policies, and the level of late payments. A “good debt settlement percentage” could range from 30 to 50% of the original debt.
However, this can vary depending on factors such as the age of the debt, the borrower's payment status, and the creditor's willingness to negotiate. While liquidating a debt may alleviate some of the pressure, there are risks and drawbacks to consider. Debt settlement can provide you with some financial relief in the short term, but it can also affect your credit rating and make it difficult to obtain financing in the future. Debt settlement companies will ask you to suspend payment to your creditors while they negotiate on your behalf. Payment history is the most important component of your credit score; if you don't pay off debt, your credit rating will decrease.
And with a lower credit score, you may only qualify for loans with high interest rates, if you qualify.