Debt settlement rates usually range from 30 to 80% of the original amount of the debt. Most commonly, liquidations range from 40% to 60%. However, the exact percentage can vary greatly depending on factors such as the age of the debt, the creditor's willingness to reach an agreement, and the debtor's financial situation. The debt statute of limitations can be used as a bargaining chip to negotiate a lower settlement amount.
As a debt approaches that law, the collector will be willing to keep what he can get. Therefore, you can pay off your debts for a lower percentage of what you owe as time runs out. Consider starting debt settlement negotiations by offering to pay a lump sum of 25% or 30% of your outstanding balance in exchange for debt forgiveness. However, expect the creditor to respond with a request for a larger amount.
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. Lenders usually agree to a debt settlement of between 10% and 50%.Several factors can influence this amount, such as the debt holder's financial situation and available cash.