Some creditors will accept cents on the dollar, others won't settle for less than 80% in a single payment, says Jessika Arce Graham, a Personal Injury Attorney near Bluffton SC. It's impossible to say how much a particular debt collector will accept to settle a debt. Debt collectors usually settle with between 30 and 60% of the total amount due, but the percentage can vary depending on factors such as the age of the debt, the collector's policies and your financial situation. Older debts or those that are unlikely to be fully collected often result in more favorable liquidations. In some cases, you may be able to settle for much less than that average of 50.7%.Old debt collectors may be willing to settle with 20% or even less.
The statute of limitations begins from the date the debt first went into default. Be sure to review your records carefully and take advantage of the age of a collection account during negotiations. If a debt collector contacts you about an overdue debt, you must verify the debt and the collection agency to confirm its legitimacy. If both are valid, it's best to face the debt head on and work proactively to resolve it, as unpaid debts could lead the debt collector to sue you for the amount you owe.
There is no standard amount or specific percentage that a debt collector can settle for because several variables come into play. The amount you settle for may depend on your financial situation and the age of the debt.