However, every situation is unique, so adjust your strategy based on your circumstances. Consider starting debt settlement negotiations by offering to pay a lump sum of 25% or 30% of your outstanding balance in exchange for debt forgiveness. However, expect the creditor to respond with a request for a larger amount. When negotiating with a debt collector, you must confirm if you owe the debt, calculate a realistic payment plan, and make a payment proposal to the debt collector.
Debts included in a partial liquidation are marked as “partially liquidated” on your credit file. Start by lowering the scale and work your way to reach a midpoint. If you know that you can only pay off 50% of your original debt, offer him around 30%. Avoid agreeing to pay an amount you can't afford. Success may vary depending on the creditor.
Some are willing to come to an agreement, others are not. In general, you should start by offering 20 to 30% of the debt as a single payment (assuming you can afford this amount). This low starting point gives you room to negotiate and, at the same time, shows that you are serious about resolving the debt. Be realistic and base your offer on what you can afford.
A “good debt settlement percentage” could range from 30 to 50% of the original debt. However, this can vary depending on factors such as the age of the debt, the borrower's payment status, and the creditor's willingness to negotiate.