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This information will help you focus on crossing the debt settlement finish line with confidence – when your success is documented.
When you’re negotiating directly with creditors, your settlements are generally going to be reached verbally first.
In the wacky world of debt collection, debt buying, and credit reporting, paying off a debt you settle without having a documented agreement, is a mistake.
And one you will regret later on if the credit card you thought was settled (other types of debt too) resurfaces in a way where a written agreement to accept less could show the account was resolved, instead of the headaches you may go through without one.
Debt settlement letters with original creditors and debt collectors are typically a standard form that will consist of the following: The letter will have other general information, such as disclosures about settling debt.
Creditors and collectors put this information in to cover themselves.
It makes little sense to start negotiating a settlement amount if you don’t have the money to pay.
Just making calls to “feel out the situation” wastes everyone’s time and could hurt your efforts later.
There are some instances where I will recommend you record a phone conversation about agreeing to settle a debt.