Should I hire a debt collector or a lawyer?
Should I hire a debt collector or a lawyer? Some debt collection experts recommend hiring a debt collection attorney anytime a nonpaying client owes you $5,000 or more. In general, as long as a debt is large enough that the cost of legal representation seems worth it to proceed to court, hiring an attorney is a good move.
Will debt collectors settle for 50%? Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you’re dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation.
What percentage will a collection agency settle for? Some want 75%–80% of what you owe. Others will take 50%, while others might settle for one-third or less. Proposing a lump-sum settlement is generally the best option—and the one most collectors will readily agree to—if you can afford it.
Is it smart to settle with a debt collector? In general, paying off the total amount of debt you owe is a better option for your credit. An account that appears as “paid in full” on your credit report shows potential lenders that you have fulfilled your obligations as agreed, and that you paid the creditor the full amount due.