Have you ever wondered what it takes to settle your debts for pennies on the dollar? Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation. Here is part three of my conversation – it lasts about 8 minutes. Kenny points out that there is nothing morally wrong with settling debt. He explains that the term “charged off debt” means nothing – it usually just means that the creditor has sold its debt to a debt buyer. He points out that many collection agencies buy debt for 5 to 10 cents on the dollar, which is why they would be willing to settle for 50 cents on the dollar or less. Finally Kenny notes that any debt settlement should be in writing and that you should never send any money without a written agreement. Part 4 will be posted tomorrow.
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Link to Kenny Golde’s book “The Do It Yourself Bailout.”