Why this range? Why this range? Creditors know that if you face financial difficulties and don't get something back on your end, you could end up receiving nothing, especially if you file for bankruptcy. Therefore, many creditors are willing to accept a reduced amount to close the account, especially if you are already in default or if the debt is in collection. Regarding debt settlement, the CFPB suggests that debtors end up paying an average of just over 50 percent of the total amount of their debt to settle it. If you think debt settlement might make sense for you, you should discuss your personal data with an attorney who regularly handles debt settlement negotiations in Georgia.
Last but not least, it's important to answer the question of how much a debt collector will settle for. While there is no strict rule for debt liquidations, the amount of the settlement is generally based on a percentage of the total amount you owe. For example, the National Foundation for Credit Counseling (NFCC) reports that the typical credit card debt settlement percentage is approximately 40% or 50% of the total amount. However, the settlement agreement can change and vary depending on the creditor, the type of debt, the total amount that debt and its circumstances.
There is no fixed amount to pay off your debt with collection agencies or debt collection law firms.