Why would a creditor agree to a reduced pay-off?
In most cases a creditor will agree to a settlement on a unsecured delinquent debt because they may never be able to collect the debt otherwise without having to use a costly collection agency or attorney, or have to sell the debt for pennies on the dollar anyways. A bank or creditor would rather take a percentage of the balance owing rather then have to write the entire debt off. Fact: 66% of ALL of the debts managed by U.S. collection agencies is NEVER collected!
