Debt Settlement Negotiation Tips

Summary

When negotiating a debt settlement, creditors may offer a reduction in the balance. In this case, a creditor proposed a 20% reduction, requiring a payment of $1,221.95. The debtor countered with a $950 lump sum offer. Its important to communicate clearly with creditors, confirm deadlines, and explore flexible payment options. Creditors typically do not report to credit bureaus, but they will inform the original creditor once the account is settled. Consider seeking legal advice for personalized guidance.

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We can only come up with * in lump sum next week
To respond to the creditor, you could draft something like this:
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Dear [Creditor's Representative],
Thank you for your offer to settle the account. I appreciate the *% reduction. At this time, I can offer a lump sum payment of $* next week. Could you please consider this amount, or let me know if there are any flexible payment arrangements we might explore?
Thank you for your assistance.
Best regards,
Hang Bui
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Feel free to adjust it to better fit your needs!