There are times when your financial circumstances may prevent you from repaying your debts in full. In such circumstances your creditors may be open to negotiate with you or a third party a repayment amount that is less than the full value of the debt that you currently owe. In some cases the final settlement amount negotiated can be substantially less than you owe. Settlements can range between 80% to 20% of the debt owed, but each settlement is entirely dependent on an individual’s financial situation (settlements in the lower end of this range are extremely rare and would require exceptional circumstances).
Because a debt settlement requires a lump sum of money to offer to a creditor, it isn’t a viable option for most people who are experiencing financial hardship. However, there are other debt relief options that offer substantial help including a debt management program or a consumer proposal. If you are struggling with your debts, feel free to contact one of our debt settlement experts to review your financial situation and see what options are available to you. Speaking us is free, non-judgmental, and confidential.