When you negotiate debt, you work with creditors to set up a payment plan that fits your budget. For example, if you’re struggling to pay off $1,000 in credit card debt each month, you may be able to negotiate with your creditors to lower that amount down to $500 per month. If successful, negotiating your debt could help you avoid bankruptcy and get rid of your debts quicker than expected. More often than not, doing this alone and without the support, can result in you paying more than you should.

Debt negotiation companies usually accept anywhere from 30% to 70% of the principal balance and accrued interest to satisfy the debt. The process can take less than 90 days. Debt settlement may be your best bet for consumers with extremely high-value debt obligations. In many cases, creditors are willing to take 50 cents on a dollar—or less—in exchange for immediate cash that they can use to recoup part of their losses.

It’s important to remember that typical debt negotiation and debt relief companies have no hard & fast rules since each company has its own policies and agreements with creditors. However, a general rule of thumb is that most debt collectors will be willing to take 25% of a consumer’s outstanding debt as payment for services rendered. This could get you out of paying 50% or more on your debts! Rest assured that New Era Debt Solutions has a successful track record when it comes to settlement.

Every situation is different, so there isn’t a specific number that can be applied to all debts. When negotiating a debt settlement in California, we work with a range of possible payouts based on your financial condition, such as monthly income, expenses, and liabilities. We analyze all of these factors before offering to settle your debt. It’s important to note that even if you have no assets or equity in property, it doesn’t mean you can’t receive a settlement offer; however, for us to make an offer, you must have some disposable income each month after paying for necessities like food and shelter.