Settling Debt Advice

by tim
(sacramento, CA)

I would like to settle with a debt collector.
I have owed for many months $77,000 to citi bank.
I would like to offer them a lump sum settlement.
What would be a acceptable offer to start with?
Thanks Tim

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Aug 31, 2010
settling your credit card debt
by: Mary & Gerri

Tim,

We posed your question to Michael Bovee, founder of Consumer Recovery Network, an ethical debt settlement company. He has helped many consumers settle their debts. He offered the following advice: The correct amount to offer up as a start to your negotiations can vary on several factors:

How many months delinquent?

Is the account charged off (more than 6 months since a payment made)?

Who has the Citi account been placed with?

Has it been placed elsewhere prior to who has the account now?

Is it placed with an attorney debt collection firm?

Is it a debt buyer who now owns the debt?

What will the collector see when looking at your credit report?

Is this a business account?

These questions I am asking are not to make this sound complicated. Answers to them would provide for a much more complete response though.

As a general reply and based on current trends, start your negotiations with a round dollar figure that is near 20% of the balance.

Starting with $15,000.00 will give you some room between their counter offer and the figure you will likely end up with as settlement.

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