Question

How can I effectively negotiate a lump sum settlement for a debt that has been charged off?

Answer 1

I wouldn't bother, it's still going to ruin your credit for X number of years- a settled debt is still a bad debt. I settled a credit card debt, and it was on my credit report as a bad debt for 5 years.

Answer 2

Some places may accept a pay off in exchange for removing it from your credit report. They don't give a squat about you, they want their money. Your credit history is your/their only leverage. . . If they won't work with you then why bother paying it off?

Answer 3

dont settle. every time you pay one penny it begins the 7 yrs over again that it remains on your credit. I used to do hard core collections and they are ruthless...which is why I stopped. They make their living on forcing you to pay when you dont have to. Tell them your goal is to see how bad you can get your credit report. Ask them for pointers on what you can do to make it worse..then thank them. lol then change your number. Keep your money. you obviously didnt want to pay the debt back when... so why change it now ... it wont do anything but pad THEIR pocketbook. The original credit card co SOLD that debt for like .50 to the collection company who is trying to make the profit off you even if you settle for peanuts.

Answer 4

Offer them a small % (15%-20%) of your debt. Then work up from that number until they accept. Call a non-profit debt consolidation service and ask for help.. . Good luck!!!