I have a some debts that are around 3 years old. Now, I want to settle them and pay off. The debts are basically unsecured - credit cards, medical bills etc. I'd like to begin the process of healing my credit score, which is currently standing at 534.

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Settling your debts is great if you have the required money to get the issue done. Creditors usually accept a settlement offer ranging from 35% to 65% of the total outstanding balance. The only disadvantages are that it stays in your credit report and you also have to pay taxes on the forgiven amount. However, unless you're an expert negotiator and understand the legal issues thoroughly, don't try for it yourself. Rather consult a debt settlement firm who are expert at doing this.


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