Debt Settlement Offer Calculator

Collectors often accept less than the full balance, especially on older debts that were sold to a debt buyer. This calculator shows a common way to plan an offer: open around 30 percent, aim for about 40 percent, and set a maximum near 50 percent. What a company accepts varies, and it does not have to accept any offer.

Make sure the debt is yours and validated before you offer anything. Get every agreement in writing before you pay, never give a collector open access to your bank account, and remember that forgiven debt of $600 or more may be reported to the IRS on Form 1099-C.