What is the Negotiation Process?

As you begin to save money in your Contribution Account, you will receive alerts in your To Do List when it may be time to consider making an offer on one or more of your creditors.  Paydoff will suggest an offer amount to start with, but you are free to offer any amount that you’d like. 

You are encouraged to begin negotiations when you feel ready.  Remember, all decisions regarding your debt and negotiations are yours alone - Paydoff will just provide you the information you need to make decisions you can feel confident in.  All negotiation suggestions and alerts are based on recent resolutions with other users as well as decades of industry research and standards.

When you are ready to make an offer to one of your creditors, you must decide how much to offer and then send them a proposal for settlement. Paydoff will guide you through the process, step by step, to create a valid and effective settlement proposal. If you do not want to offer the suggested amount to your creditor, you should read “How much should I offer?”

Once the creditor receives your offer it may take some time to hear back from them.  If you do receive a response, the creditor will accept your offer, decline the offer or counter your offer with another amount that they find acceptable. You may not receive a response from the creditor at all.  Whatever happens, Paydoff will guide on what to do.  The most common response to a reasonable settlement offer is for the creditor to counter you offer with another amount they will accept.  During the negotiation process, it is likely there will be some back and forth offers between you and the creditor.  It is important to enter into Paydoff all counter offers and communication you receive from your creditors.  For each counter offer Paydoff will guide you on how to proceed.  It is always your decision how to handle your debt; Paydoff will just provide suggestions that have produced positive results with other users in similar situations as yours.

When a creditor has accepted your offer or you have accepted the creditor’s counter offer, Paydoff will guide you to ensure that the settlement letter is valid and has the required information on it so that you do not disburse funds to a creditor before you have the proper documentation.  Paydoff will help you to recognize a valid settlement letter so you can protect yourself, and your money!  Paydoff will suggest the best way to send settlement funds to the creditor to make sure that the money is received on time and sent to the correct place.  As you begin to settle your accounts, Paydoff will keep track of each settlement for you.