Many of our clients have multiple credit cards. They often ask us to settle other debts for them as part of our representation. (Just a word of caution, don’t default on your debt it’s just not worth it, but if you default here are a few tips). First, you don’t need to hire anyone to negotiate for you. You can and should do it on your own. Second, you need to know if the debt is owned by the original creditor or was it sold and then bought by a third party. You need to know this because the chances of winning if they sue are directly related to if the debt was bought and sold or not. If it was never sold you are at a disadvantage, which means you’ll have to offer more money. In either case we generally say that you should only settle if you can make a lump sum payment. Start at 30%, don’t go above 60%. On your own these are good rule of thumb numbers. We rarely negotiate but if we do we start at 10%. If you call the creditor and they won’t take 30% just say thanks and call back in 30 days. In many cases they’ll re-think the settlement and take a number they rejected previously. Remember the creditor is just making a financial calculation; at what number does it make sense to settle now and take a discount compared to the cost and time involved in suing you and trying to garnish your potential assets. In most cases the calculation is between 30% and 60% of the principal amount. If you are in Missouri and want more advice call or email us. Phone and email consultations are always free.