Understanding Settlement Rates from Debt Settlement Companies

It is impossible for a debt settlement company to guarantee a specific amount of savings. Be cautious if a company promises "Savings of 70%" off of your debts. In most cases, unreasonable figures like this can be deceptive and may be a gimmick to get you into their program. The truth is, settling debts is a negotiation process and therefore a specific amount of savings is impossible to predict. You should ask and find out what the company's average settlement percentages are, but it is no guarantee of what your savings will be. A reputable debt settlement company will usually estimate your savings at around 50 cents on the dollar. 50 percent is a realistic savings amount and if your debts are settled at a lower rate then you may have a shorter payment schedule or even have additional funds be paid back to you upon completion of your program. Be cautious if a company sets up your payment program based on 30 cent on the dollar savings (70% of your debt). It is very rare that all of your accounts will be settled this low and this potential unrealistic quote will then make your payment program longer and more expensive