Negotiate a Debt Settlement

Debt settlement!?

I sent my creditor a certified letter of debt settlement that I would pay in a lump sum, my debt .30 to the dollar. and If they were willing to settle send me a letter signed in agreement! How long do they have respond? It has been a week. Should I keep sending them the letter..? am I on the right track. I am only 19, and want to fix my mistakes I made with two credit cards I made last year! also how will it look on my credit if its paid?

Public Comments

1. You should have stated a timeframe for the offer in the letter you sent them. I would re-write the letter and this time give them 10 days to respond. Also require them to remove any negative marks from your credit concerning this debt. They are probably trying to figure out where you got the money to offer them 1/3 of the balance as a settlement. If they can figure out where you have the money they may try to get to it and take it all. If they have already filed a judgement against you be very careful about where you keep your money.
2. I'm going to bet they ignore your letter altogether. You say this debt is about a year old? And you are only offering to pay 30% of the balance? No way they are going to accept it. At this point, if it's not at least 70% they won't even bother. If your intent is to fix your credit score, you need to be sure to include wording that they must delete this from your report once you have completed payments. Get this IN WRITING.
3. If you are current on your payments, they are almost certainly NOT going to go for this offer, especially for 30%. I would recommend retaining the services of a professional debt settlement company. A couple good resources are www.internetdebtrelief.com and www.ccdebthelp.com.
4. If you are trying to clear up your credit report and these debts are only a year old they will definitely not settle for 30 cents on the dollar. Also a settlement will not bring your credit score up as much as a paid in full would.
5. I have good experience with a debt consolidation company. It is the best ever. You want to know who it is. Its me. I learnt everything I could about debt management and then I put it all into practice. I spoke with my creditors, stopped interest and came up with a repayment plan. Those very same creditors now have me at AAA rating and lend whenever I need it. This is how you and everyone else goes about debt management. It really is quite easy to do. My profile has more because I put my experience onto a site for others, and yes, its free.
6. There is a website available that explains the entire debt settlement process from start to finish and they will be able to answer all your questions on when to send a settlement letter and how to respond to an offer. All the forms are available for download. Check them out at http://www.adsdebtsettlement.com