Paying old debts
Date: Wed, 10/21/2009 - 13:19
Now, I am finally in a position to pay off some of my debts. What is the best way to do this? How do I know who to pay? How can I be sure they are the right party?
My plan is to send a settlement letter offering x% of the original amount with the stipulation they report this debt as paid in full and will not sell the remaining due to another company. What percent should I shoot for?
Anything I am missing?
I am waiting as I am in the same boat as you are. I hope someone
I am waiting as I am in the same boat as you are. I hope someone responds.
How old is your debt? I'd shoot for 40-60%. The worst that can
How old is your debt? I'd shoot for 40-60%. The worst that can happen is they say no. If it's an old debt, usually they're agreeable to recouping any funds. Keep in mind, if they're writing off a large balance, the write-off can be reported to the IRS as income and you'll have to pay taxes on it.
Agreed. You want to shoot for 40-60% of the balance. I have seen
Agreed. You want to shoot for 40-60% of the balance. I have seen people settle with cc companies for as low as 30% of the owed balance. Guess it depends on how old the debt is as Joy stated on what they are willing to accept.
Joy makes a good point. You may not want to shoot to low because depending on the balance writen off, it can be taxed to you at the end of the year.
Best of luck!!
