Debt settlement

Debt settlement
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Hi there, I would like to know if I could offer a lower debt settlement to one or both creditors such as an example if I owed say like $1,185.00 to offer them a settlement of $550.00? Also can or would they accept it?



Hi, phillstone32651, and welcome to the NerdWallet community!

You can offer a creditor a settlement, yes, but whether they will accept it may depend on how long since a payment has been made, company policies, etc.

It doesn’t hurt to ask, but be aware that settlement is considered a last-resort solution for debt problems, and be sure you are aware of fees and taxes that may come along with it.

Good luck to you, and let us know if we can help further.


I’d definitely read the article that Bev linked to before you make your offer. As she notes, there are considerable risks involved and you don’t want to get sued. That said, if you’re dealing with a collection agency, they may have paid $100 or less for that debt so anything they get from you is mostly profit. That gives them an incentive to settle, and can save you a lot of money.