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I owe $34,000 on one credit card. They offer a settlement of debt reducing my debt to 10,000 with a final amount of 24,000 payable in three weeks. what do you recommend?

Hello. This is really a question only you can answer. Do you have the $24,000 to pay back this debt? Are you using a debt settlement company? If so, is any part of the settlement company’s fees based on the settlement amount? (in other words, will you owe them a portion of the $10,000 in savings or were most of their fees paid up front?)…

Debt settlement amounts and percentages vary greatly. Sure I’ve heard of people settling for as little as 20 cents on the dollar which would make your original $34,000 in debt only $6,800 BUT you cannot count on such things as every situation is different as is each creditor’s willingness to settle.

If you don’t take that settlement you may risk getting sued so bargaining too hard is not always the smartest thing to do especially if you have the $24,000 to pay them back. If you do not, well then, you may be forced to try and settle for more.

But remember, legally you owe them this money so if they are willing to knock $10,000 off the bill, that’s pretty good especially if you are not using a professional settlement company to assist you.

Best of luck to you.