Most consumers don't know that most creditors will take a settlement amount for the bad debt you owe them. This is especially true if the account has been charged-off or has
been sold to a collection agency.
The amount that companies pay for bad debt depends on the type of account and on how old it is. Below is a simple list on what most bad debt companies pay for the debts on which they are trying to
collect.
1) Debts that have recently been charged off: 6 to 7 cents on the dollar.
2) Accounts that are a little older and on which a collection agency resold the debt: 1.5 cents to 2 cents on the dollar.
3) Very old debt on which the Statue Of Limitations has expired on them: A penny or less.
Remember the above list when trying to get a debt collector to take a settlement offer for a old debt. Be strong and don't get angry if the debt collector argues with you. Maintain a calm attitude at
all times with them and the collection agent will eventually cave in.