“If R1 is the best, then the only notation worse than an R9 would be bankruptcy.”David Low - Senior Credit Counsellor
WARNING! There are some Cash Settlement Offers that are bad.
Cash Settlements offers are sometimes sent to debtors in order to save you (the debtor) money and save the creditor time in recovering the amount owing. The amount that is discounted from the present balance will range from 20% to 70% depending on how old the debt is and if a collection agency is involved.
The negative side to cash settlements is that it is always recorded as an R9 credit rating. If R1 is the best, then the only notation worse than an R9 would be bankruptcy.
WARNING: There are Debt Settlement Companies and Debt Arbitrators who advertise on television or who may phone you offering up to 70% reduction on your debt. What they fail to tell you is that they don’t actually negotiate or pay any of your creditors for 3 years. Collectors despise this process and usually sue you long before the 3 years are up. In the mean time, the creditors will continue to harass you because the debt settlement/Arbitrators do not contact them nor do they pay them. They charge a very large fee for this.
Always contact a Government Licensed Credit Counsellor when negotiating cash settlements. The fee associated with negotiating cash settlements will be quite small in comparison and the creditors including collection agencies are more likely to make an agreement with a Government Licensed Credit Counsellor. The Credit Counsellor will make sure that you are supplied with a copy of all official paperwork from the creditor that verifies the debt has been paid off. Without these papers, debt can mysteriously reappear a couple years later, only this time with a different collection agency.