Get rid of your debt – chord settlement

If you have a debt with a debt collection company, a factoring company, a company or Good Finance that you have not been able to repay for several years, it is very possible that you can get a chord , or a settlement agreement, which will freeze interest and possibly reduce the debt . Such applications can be made directly to the collection company or factoring company.

If your debt is with Good Finance it is also not run, you can still contact the person you owe money and ask if you can make a chord application. However, it is you who owes money that decides whether or not you can make a chord application and it is also the one who decides whether or not to get a chord.

If you get a chord, the debt is withdrawn from the Crown Magistrate, but if you do not complete your chord settlement, the debt can unfortunately end up with the guardian again.

Easier to get a chord for long-term debt


Usually, it is easier to get a settlement agreement if you have had a debt for several years with the debt collection company than if the debt has only been there for a few months or for a year. There are two reasons for this:

  1. If you have not been able to pay the debt for several years, the debt collection companies are eager to finally get paid.
  2. The debt collection company will still make a nice profit as the interest rate has ticked for years. It is not uncommon for a debt of maybe 25,000 to have grown to USD 60,000 – 80,000 after 8-10 years because of the interest rate, so even if you get the debt written down to USD 50,000, the debt collection company has received USD 25,000 in interest.

However, this does not mean that you should postpone the payment unnecessarily because it would probably have been cheaper to repay the debt after just one year than after several years. We just want to show that the negotiating situation usually gets better if you have had a debt for a long time.

How is your negotiating position?


How much you can get your debt reduced depends on three factors: How quickly you can pay off the entire debt, how long you have had it and how much of the debt consists of the interest rate. Here Goodbank will show you what a good and a bad negotiating position looks like so that it will be easier for you to see how you are located.

Optimal negotiating position

  • You have a debt where the interest debt is far greater than the original debt, ie what you have borrowed.
  • You haven’t been able to pay off the debt for maybe 5 – 10 years.
  • You have the option of paying off the entire debt at once, or at least a large portion of it.

If this applies to you, you can probably get your debt significantly reduced.

Bad negotiating position

  • Your debt is not that old and the interest rate is less than what you owed from the beginning.
  • You can only pay off the debt monthly.

If this is true of you, it will probably be difficult to reduce the debt, but it is not entirely impossible that the debt collection company can freeze the interest rate.

Different chord settlements

Different chord settlements

Most settlement agreements result in interest rates being frozen and usually the debt can also be reduced. This is how it looks:

Frozen interest

The strangest chord settlement you can get is frozen interest. This means that you will have to pay everything you owe until the day you received your agreement. This settlement is most common for slightly smaller debts and for debts that are not that old. If you have a bad negotiating position, this is probably the deal you get, unless you can pay a lump sum instead.

Reduced debt

The debt collection company can also reduce your debt if you have a good negotiating position, ie have a fairly large debt that has grown under several hairs. If you reduce your debt, the debt collection company will of course also freeze the interest rate. The three most common chord settlements tend to look like this:

  1. Monthly Installments. It is not always easy to get your debt reduced on monthly payments, but if you have had the debt for a long time and the interest rate is very large, it is not at all impossible.
  2. Lump sum and then monthly installment. One way that increases the chance of getting a good settlement is to pay off half the debt at the first payment and then repay the rest monthly.
  3. Only lump sum. If you repay your entire debt, minus what you propose in your chord application, you can get a really good dea

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