Dealing with debt collectors can often be quite difficult. You get behind on your bills due to a job loss or illness and once you get back on your feet, you try to settle the amount due with cash. But it is difficult to find the emotional energy to deal with collectors when they are calling you every day to try to get you to pay. To help out those out in that situation I have worked up a Debt Settlement worksheet to help you determine what amount to offer in a settlement situation.
Simply enter all your past due debts along with the amount owed in the appropriate columns. The sheet will then automatically calculate certain percentages of the debt that you can then offer the creditor as a settlement in full.
A few things to remember with settlements is that you can only settle debts if you are behind and you should never fall behind simply to settle a debt. If you have the money to meet your monthly bills then you should pay it. Also, you can only settle if you have the cash, so don’t offer a settlement until you actually have the money in hand. A few other tips include getting the settlement offer in writing before you give them any money and also, do not under any circumstances allow the creditors access to your bank account. For more tips check out an article I wrote about dealing with harassing debt collectors.
Remember, you can find more free spreadsheets and other resources in our free financial resources page.