The selling price of a collection account is usually a small fraction of the face value of the account. However, the collection manager has the right to collect the nominal value of the account. With regard to the settlement of the debt, a creditor agrees to waive a certain percentage of the outstanding amount. He agrees to pay himself with a final amount reduced by the total amount due. A debt settlement agreement is a written agreement between a debtor and a creditor in which the debtor undertakes to pay the creditor the outstanding debt owed to him. It is also known as the Debt Compromise Agreement. This agreement can be legally enforced by printing it on an extrajudicial affixing document, stamp duty being affixed in accordance with the laws of the State, the signatures of both parties agreeing. There is no guarantee that the debt settlement company will be able to reach a successful agreement with the borrower`s creditors. According to the Credit Counselling Society, the success rate of for-profit debt settlement companies is less than 10%.

How much you can afford to pay in your account, after an honest check of your budget….

This entry was posted in Geen categorie. Bookmark the permalink.