Can I negotiate a lower principal balance as part of a debt settlement?

Yes, you can negotiate a lower principal balance as part of a debt settlement in California. Debt settlement is when a creditor or debt collector agrees to accept a lower amount than the full balance due as payment in full for a debt. In order for this to happen, the creditor or debt collector must agree to accept a lower amount than the full balance due. If you are negotiating with a creditor to settle a debt, you may inquire about reducing the principal balance. This would reduce the amount of money you owe. You may also suggest a lump sum payment to settle the debt in full. A lump sum payment is the full amount owed on the debt, but it saves you from having to make monthly payments. The creditor or debt collector may accept a lower principal balance, depending on the circumstances. If they are not willing to reduce the principal balance, you may suggest negotiating a lower interest rate or waiving late fees. Debt settlement is a useful way to reduce your debt quickly and efficiently. It is important to remember that settling debt affects your credit score, so it should only be considered as a last resort. If you are unable to negotiate a lower principal balance as part of a debt settlement, it is important to find other ways to manage your debt.

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Can I negotiate a lower principal balance as part of a debt settlement?

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