Is it possible to settle a debt for less than the amount owed?

Yes, it is possible to settle a debt for less than the amount owed in Arkansas. This is known as debt settlement, which is an agreement between the debtor and creditor to settle the debt for a reduced amount than originally owed. When attempting to settle a debt, it is important to ensure that you are dealing with the right person or company. You may need to call the original lender or speak to a debt settlement company. You can also request that the creditor validate the debt. This means that they must prove that the debt is owed by providing you with proof such as a valid copy of the contract. Once the creditor has established that the debt is valid, you can proceed to try and settle the debt. In most cases, the creditor will be willing to accept a lower amount than originally owed. This amount must be mutually agreed upon and usually involves you making a settlement payment. This payment will be a lump sum that is lower than the original debt amount. Once the payment is made, the debt is considered settled and will be taken off of your credit report. It is important to understand that if you settle a debt for less than the amount owed, it will still show up on your credit report. However, it will no longer count negatively against you.

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Is it possible to settle a debt for less than the amount owed?

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