- A collections agency or creditor attempts to collect a debt in full, if they are not successful, they may decide to:
- Offer the debtor a settlement to be paid in full
- Offer the debtor settlement to be paid in installments
- If the collections agency or creditor does not offer a settlement but the individual debt is willing, an outside negotiator can:
- Offer the creditor a settlement to be paid in full
- Offer the creditor a settlement to be paid in installments
- If/when a settlement amount is mutually agreed upon:
- The creditor provides the settlement offer in writing
- The debtor pays the settlement as previously agreed
- The debtor requests or is provided with a receipt
- The creditor marks the debt as ‘paid’ or ‘satisfied’
- The creditor updates the credit report
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