Debt Negotiation Advice
When asking for a debt settlement, how should I word the request for a lower pay off amount?
I know sometimes when dealing with credit companies the way you word your requests matter. How do should I word a request for a lower pay off amount? I know getting my pay off down to 35% of the debt is unlikely (but I know it has happened) but getting the pay off down as low as I can would help me greatly. Any sure fire wording????
Public Comments
- Go to creditinfocenter.com and check out their credit repair sample letters. There are a lot of ideas on there to get you started, but you will need to taylor them to your needs. Good luck!
- I don't think wording is the key factor...It's how many months late your account is delinquent....When an account is majorly past due...such as five to six months, it's common for credit card companies to accept settlements in the 50% range...They do this as opposed to loosing everything if you file for BK or if they have to sell your an account to a collection agency for pennies on the dollar. 50% is about as low as you can expect to go for a settlement with a credit card company.....You can go lower with collection agencies though. Credit card companies are under no obligation to accept your offer so be careful. You can never predict what will happen...some might accept the offer while others might take you to court. FYI: A settlement looks bad on your credit file...Also, forgiven/settled debt is considered earned income by the IRS, so any debt you manage to get forgiven will have to be added to your next year's adjusted gross income and you'll have to pay taxes on that extra amount. If you get a settlement, get the terms IN WRITING FIRST. DO NOT do settlements verbally over the phone without written documentation.
