Tenant Debt Settlement Facts. Some people find that after moving out of and apartment or residential rental building they end up owing a past balance. This can be a stressful situations depending on the amount that is owed for this type of debt.
Tenant Debt Settlement Facts (Debt Negotiation) Defined.
Debt settlement is a process where a debt collector agrees to accept less than the full balance owed. In other words, if you owe the debt collector $1,500, there’s a good chance that you can settle your account for up 50% of the debt, sometimes more with no further balance owed.
Tenant Debt & Your Credit Score
While debt settlement doesn’t contribute to a lower credit score, delinquency does. Unfortunately, a debt collector wont consider offering or accepting a settlement agreement on your account(s) until after the accounts have fallen into a delinquent status.
Most people considering debt settlement are already delinquent, and their credit score will improve significantly after a zero balance is reflected on their credit report. For most people, however, a decent credit score is less important than financial freedom and peace of mind.
Debt Settlement Can Be Completed Relatively Quickly
Depending on the amount of money you owe, the stage of delinquency your accounts are in and your ability to accumulate sufficient funds for settlement, this process can take anywhere from a few days to a few months.
Debt Settlement – The Bottom Line
Fortunately, the process of debt settlement has helped many previous tenants that could not afford to pay their debt in full. If you’re at the end of your rope and you simply don’t see yourself ever digging your way out of your previous tenant related debt, debt settlement is certainly a viable option, and one you should consider. All of this will depend on the debt collector, you can find out more information on a specific debt collector reviews.