One Time Settlement (OTS)

One Time Settlement (OTS) is when you pay the agreed settlement amount in a single payment. If you are able to pay the amount in one go, it becomes easier to negotiate a better discount with the lender.

The amount of discount that can be negotiated depends on several factors, such as:

• How many EMIs have been missed

• Age of the debt

• Whether the account is classified as NPA (Non-Performing Asset) or written off

• Any ongoing legal or recovery action
  

One of the biggest advantages of OTS is the possibility of getting the maximum settlement discount. However, the challenge is that it may require a significant lump sum amount at one time.

If you are currently unable to arrange the amount, you can start saving gradually until you build a sufficient settlement fund. Many borrowers also choose to work with debt relief companies that assist in negotiating settlements with lenders.

Before choosing any debt relief company, make sure to ask:

• What are their service charges and terms & conditions?

• How long will the settlement process take?

• Will additional interest or penalties continue during this period?

• Who will handle collection calls, recovery pressure, or legal notices?

• What experience or proof do they have in negotiating settlements?

• How much money should you save before a settlement offer is made?

• What happens if you miss payments during the process?

• In case the company shuts down or faces financial issues, what happens to your funds?