What’s a good negotiation percentage to approach collectors with on “pay for delete” letter?

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I have various debts that I am attempting to have a “pay for delete” agreement for, that range in different dates. Some of them fall off as early as early next year, and some are only 1-2 year old debts.

The debts in question have been turned over to collectors, so are not the original creditors. I was thinking of offering something such as 75% of the reported amount for the 1-2 year old debts, and something as low as 35% of the reported amount for the debts that are 5-6 years old and falling off early next year.

I am trying to clean my credit up this year, and don’t want to have those old debts sitting on there for another year…plus they are fairly small (e.g. between $150-$400).

I understand that these collectors probably bought the debts for very little. I just don’t want to lose the opportunity to settle the debt on a “pay for delete” agreement, by offering too little. Some opinions from those who have done “pay for delete”??

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3 Responses to What’s a good negotiation percentage to approach collectors with on “pay for delete” letter?

  1. DAS says:

    I hope this strategy works for you, I have never heard of pay for delete, is this common?

  2. anything over 2 yrs old start at 15% – anything more current start at 45% – If you start high – you can’t go lower – so start LOW and inch up as needed :) Also realize that paying off this debt will intially drop your FICO score before it raises it – so it’ll be an improvement but not overnight fix – more long term. Good Luck

  3. For the older debts I would start with maybe 25%. I don’t think you need to worry about them rejecting the offer. If they do, then you can ask for another settlement. They will want to get SOME sort of payment.

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