how often will debt collectors settle on a lower amount for overdue debts, and how much?

Answer 1

debt collectors will almost always settle on a lower amount, but how much is up to the person you owe, not the debt collector. You can haggle quite a bit and get a lower amount or get on a payment plan.

Answer 2

Every answer was wrong in some part. This is what I do professionally; settle debts as a debt arbitrator. You can in fact settle judgments. Some creditors will settle if the account is as little as 2 weeks late and in extreme cases, current. You can do your own settlements , sure; but you could also do your own taxes and not get as much back. Point being, some things are best left to the professionals. Many collectors really enjoy chewing up and spitting out debtors; belittling them in the process. You don't need the hassle. Check out the following link, contact Marguerite, and she will put you in touch with a qualified debt settlement company.
http://hawaiinetwork.com/index.php?option=com_content&task=blogcategory&id=13&Itemid=39

Answer 3

Hi. I received the same notice, with a total due of $353.11 I had a feeling it was bogus right away because it's different than any late notice or debt collector notice. (yes, I've gotten them before.) Normally, the notice would state the origin of the fee (the original amount due) with the company's name it was owed to, and perhaps for what specific reason. Then it would list the interest amount. It may also include your account number with that company. There would be a number to call. This note is very generic and therefore suspect.

Answer 4

You have a better chance of settling with a creditor at the end of the month is the first part. Secondly based on the creditors monthly and quaterly performance will determine how low they will settle for. Creditors don't have so settle they can sue you for the full balance in court and you can't settle a court order.

Another issue is that you don't have much to offer the creditor. The money is minimal comparitive to working with a settlement company such as http://www.fdnsolutions.com They can reduce the debt in most cases by 60% As well as set you up on a payment plan if you don't have all of the settlement money available.

A debt settlement company will batch process the accounts so that groups of client accounts are settled in a sense. Meaning that instead of offering for example Discover 2k on your account the settlement company can offer 250k+ on hundreds of client accounts with that creditor.

you can speak with an expert at http://www.fdnsolutions.com

Answer 5

to my knowledge, you must be 120 days delinquent(haven't paid for 120 days) then you may be eligible for a settlement. you can't settle for anything less than the principle balance (the amount that you bought without the fees being added). generally they negotiate with you to get you to pay as close to the current balance. so call then up with an amount in mind that you would like to pay, then stick to it! good luck