Settlement Figures - Quick Fix Debt Solutions
There are many solutions to resolving outstanding debt. Settlement figures are an ideal way to bring long running accounts to a close.
Many companies are likely to consider a one off settlement figure which will be considerably less than your outstanding balance. If your creditors have passed your account over to a debt collection agency, you will need to contact them to work out a settlement figure. In most cases, companies are as eager as you to find amicable debt solutions without the cost and implications of legal action, or years of settling for token payments.
One of the most effective ways to reach a mutually acceptable settlement figure is to request a quote over the phone or in writing. This will allow you to pay off a percentage of the debt whilst the remainder is written off. Most debt collection agencies offer this form of settlement as they purchase your debt from your lender at a substantially reduced price and can therefore accept a smaller figure.
Usually companies ask for approximately half of the original debt but some accept settlement figures which are much lower, even as little as 30-35%. If you feel that a settlement figure is the ideal way to rid you of a debt, ensure that you negotiate an agreeable figure with your creditors. There are many templates on the internet which will assist you in writing an appropriate letter of settlement. Your entire balance will be calculated and you will be offered a reduced fee to clear your balance. If you are unsure if the figure quoted is correct, you can send a copy of your creditor’s letter to Trading Standards who will use computer generated software to verify the sums quoted. Act quickly, as settlement figures only remain valid for a set number of days. After this time period, figures could fluctuate from month to month.
Once a settlement figure has been agreed, your account balance is wiped and the matter is brought to an amicable close. Debt settlement will significantly improve your credit rating as your outstanding balance is reduced to zero. However, do not make the mistake of borrowing money to clear an account. Only settle an account at a reduced rate if you have enough spare cash to do so.
Related resources:
If you want further information on debt selltlement you can contact Debt Free Direct's debt helpline.
Debt Advice News posted on 30/05/2007 14:55:07
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