SETTLEMENT PERCENTAGES AND WHAT TO EXPECT. I’ve been in the debt negotiation industry since 1998 and have worked with one of the premier debt negotiators, Paul Killmar so I am well acquainted with the debt industry and what to expect from the negotiator. The truth is, the settlement percentage that is the industry standard runs between 43% and 45% of what is owed. That is the average settlement percentage.
Now, you will get these incredible settlements where the percentage is 7%, which was one we got for a $35,000 debt, but those are very, very rare.
BANKS AND CREDIT CARD COMPANIES CASH-FLOW
Part of the settlement percentages have to do with the cash-flow needs of the banks and credit card companies. If they are cash light, they may be willing to settle for a lesser percentage. For instance, Citibank is having a hard time and they are now more willing to settle credit card debt for about 20% less than they had before.
MBNA use to give good settlement percentages, then in 1999, they settled for around 60%, but more recently, they have lowered their settlement percentages to around 40%.
EAGER SALES PEOPLE
I give you this information so you know ahead of time what to believe from the sales person. Sometimes, it is popular to talk about the 1 credit card that settled for a very low amount and act like that is the norm of the banks and credit card companies. It is not.
Just beware of the eager sales person and know ahead of time what is true and what isn’t. Then, you can better judge the Debt Negotiation company.
Has the economy made the banks want a higher percentage? Or are they willing to settle for less because more people are having debt problems?
I have been visiting this site for a couple of days now and i’m really impressed with the content. Thanks.
Jeez. That 7% settlement sounds very good.
This is a good bit of factual info that will help someone not get suckered in by bogus hype from a disreputable company.
I know Doug Daniloff, the owner of this company who has helped a lot of people. This kind of information and shedding light on an area that is difficult to confront is typical of him and his business model.
Thanks for that.
Extremely great post. I stumbled onto your page and that 43-45% was what I was hunting for.