What types of debt payments can you negotiate?
Summary
Many people struggle to keep up with monthly debt payments due to rising costs and inflation. Some debts, like credit card and medical bills, can often be negotiated to lower the total amount owed, especially if the debt is in collections.Key Facts
- About 34% of people say they cannot pay the full amount on all their debts each month.
- Around 44% would consider using a company to negotiate their debts.
- Debt settlement means agreeing to pay less than the full amount owed.
- Credit card debt is easier to negotiate because it is usually unsecured, meaning no specific property backs the loan.
- Medical providers often can reduce bills because they prefer some payment over none.
- Debts sent to collection agencies are often more negotiable because these agencies buy debts cheaply or earn commissions.
- Negotiating debts after they go to collections can hurt credit scores, so it’s better to explore options early.
- Some medical debt may be reduced through assistance programs before negotiating a settlement.
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