Debt settlement means that the original debt is not paid in full and that some lesser amount is accepted as a means of satisfying (or discharging) the debt. By settling a debt, you may avoid bankruptcy, stop collection calls and letters, and prevent your debt from being charged off. Keep in mind, disputing collection accounts may trigger a flurry of settlement offers from creditors.
It may be in your best interest to take advantage of these offers. Here are 11 tips to get started.
1. Make sure you owe the debt by first “validating” the debt
2. Don’t contact the creditor or collection agency until you are ready to negotiate (and pay) a settlement offer. Attempt to reach a settlement for 20% to 50% of the original debt.
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