A good debt settlement offer generally involves offering a one-time payment, often 25 to 50% of the total debt, in exchange for full debt forgiveness, but the percentage can vary depending on the age of the debt, the creditor's policies and your financial situation. 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.