What percentage should I offer to settle debt?

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Thinking about debt settlement in Canada? Typically, you might offer 30% to 70% of what you owe. Factors like debt age and who holds it matter. Older debts often settle for less, while original creditors usually expect more than third-party collectors. A skilled negotiator can help you reach a wallet-friendly deal. Reach out via phone, text, or live chat if you have any questions.

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Percentage To Settle Debt Question

What percentage should I offer to settle debt? I’ve heard about offering a percentage for debt settlement but don’t know what range is typically acceptable to creditors.

From: Anonymous Question
Location: Nanaimo, British Columbia (BC)
Category: debt settlement

Percentage To Settle Debt Answer

If you’re thinking about settling a debt, you might expect to offer anywhere from 30% to 70% of what you owe. How much you end up settling for can dance around a few key factors like how old the debt is and who holds it. Generally, older debts could settle for less. On the flip side, original creditors tend to drive a harder bargain, hoping for higher offers compared to third-party collectors who bought debts at a bargain price. And let’s not forget—having a savvy negotiator in your corner can tip the scales in your favor, making sure you get a deal that suits your wallet. For more insights on managing these debts and repayment strategies, explore our section on debt settlement.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

Typically, creditors may accept a settlement offer in the range of 30% to 70% of the total debt owed. However, the specific percentage can vary based on factors such as the creditor’s policies, the amount of debt, your payment history, and your financial situation. It is advisable to negotiate based on your financial capacity and the likelihood of repayment. For precise terms regarding settlements, refer to the Bankruptcy and Insolvency Act (BIA) and associated regulations, which outline the processes for dealing with debts.

From: OSB Helper

Related Questions to Percentage To Offer To Settle Debt

Here are the top 5 most frequently asked questions related to debt settlement percentages in Canada, formatted as requested:

1. What percentage of debt is typically accepted in a settlement?

• A typical debt settlement amounts to 30% to 70% of the owed debt[1][4].

2. What percentage should I offer to start debt settlement negotiations?

• Consider starting with an offer of 25% or 30% of your outstanding balance[2].

3. How does the age of the debt affect the settlement percentage?

• Older debts are more likely to be settled for lower percentages, often below 50%, while newer debts may require 70%-80% of the entire debt[5].

4. Is it better to negotiate with the original creditor or a third-party collector?

• Debts sold to third-party collectors are often easier to settle for a lower percentage because these agencies purchase the debt for a fraction of its value[1][4].

5. What are the potential costs associated with debt settlement?

• Debt settlement companies often charge fees based on the original debt owed, and there may be additional fees such as a filing fee for consumer proposals[4].

If you have a question about debt see our debt questions or ask your own debt related question.

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