Making A Debt Settlement Offer

Making a debt settlement offer involves creating a definitive plan and supplying proof of determination to stick to that plan while settling the debt and eliminating problem accounts. Creditors are not always ready to give up an account that is actually more profitable to the company through its delinquencies that pays them bonus finance charges on high or overlimit balances and late fees. When making an offer, the borrower should consider the company's reluctancy as proof that the borrower has actually been a more than satisfactory customer - bringing in loads of profit to the company otherwise they wouldn't be so reluctant to let the borrower settle.

Taking such actions shows the creditors evidence of the borrower's intent to pay in full. Begin by offering to each individual creditor an amount the plan is willing to offer them as a full settlement if they would accept it as an immediate payoff and closure of the account. Continue to make payments, no matter if they are less than the billed amounts. Even if the debt elimination takes longer than hoped due to the creditors' lack of cooperation, it is important to remain dedicated to the success of the plan, working to consolidate, but primarily to eliminate revolving and new credit card debt. Making a debt settlement offer is a pro-active start to taking control of finances and thereby the future.

The plan for such success will include listing all the accounts that need to be eliminated and the ones that can be kept if significantly reduced and strictly held under control for the future. The list should include the current balance, monthly payment amount, and interest rate of each one. Indicate the total borrower's monthly liability including a sum figure of "other" monthly household expenses that are deductions from the monthly income. Finally note the current household income noting the overall deficit that is the reason for making a debt settlement offer. If the company absolutely refuses then, as a secondary measure, request a freeze of the interest rate or compromise on payments for a period of time so the plan has a chance to eliminate other accounts that have accepted the settlement offer.

By creating a plan in an organized and concise manner, the creditors should recognize the borrower's serious attempt to correct a critical financial situation. Paul wrote to the Philippians in the fourth chapter verse 13 "I can do all things through Christ which strengtheneth me." Hopefully, the creditors involved when making a debt settlement offer will be willing partners to a positive end. But even if they don't accept the plan and the borrower must "go it alone," the important thing is to not give up, always make payments no matter how small, and "get 'er done!"

Add to: File Insurance Business article Teen Photo Images