Sample Debt Settlement Letter and Writing Tips
If you have decided to deal with an debt relief option like debt settlement, you will want to know how to create a quality debt settlement letter. There are certain elements that every letter should contain; you will want a letter that accurately documents what you desire, what you require of your creditor, and the terms you are willing to agree to in terms of debt repayment. Any missing elements in a letter sent to your creditors can prove to have a negative impact on any and all of your debt settling efforts. Here are some tips pertaining to what your letter should include and a sample letter for you to use.
Sample Debt Settlement Letter
Debtor’s Name
Debtor’s Address
Debtor’s Contact Number
Name of Creditor
Creditor’s Address
Re: Debt Settlement Request for Account #/Reference ID
Phone Conversation Date: (include date)
Letter of Collections Received on: (include date)
Dear (name of representative):
I, (debtor’s name), am contacting you in regard to a debt settlement request for the above referenced account that I currently have with (name of company). I would like to make (number of payments) in the amount of $(enter monetary amount), per (month/bimonthly/weekly).
If you agree to the above request, I would appreciate your consideration and acceptance of the following terms:
Please cease any litigation processes.
Once paid as agreed, please indicate that the account has been “paid in full” with the credit bureaus you report too, and please remove negative reports on my credit report.
If you find this agreement acceptable, please forward written confirmation to the address I have provided above. I thank you kindly for your consideration and your time.
Sincerely,
(Name of debtor)
***
Note that the above debt settlement letter must be customized, but it is very concise and to the point. Keeping your letter simple will ensure that there is no confusion later on down the road about what you desire. Do not attempt to use flowery language to snow over creditors. Be polite, and request that the creditor work with you, but do not demand anything. You may even want to include some information as to why you have been unable to pay up until this point; an explanation may pave the way to easier debt negotiations. Bear in mind however, that the creditor is not obligated to accept any demand for debt settlement.
Do not be afraid to make a first time low offer on the payments you would like to make. If the creditor is at all willing to work with you, they will make up a counter offer if they are unsatisfied with your initial offer. If you receive a counter offer, read it carefully and make sure that it has terms you can live with. If you are satisfied with the offer, agree to it in writing and call the creditor to let them know that you are sending a letter of agreement.
Make a copy of the debt settlement letter before you mail it out and keep it for your records. If you mail the original, be sure to have it mailed with a return receipt request; this way you know that your creditors received the letter you have sent. If the creditor agrees to your request, make sure you begin making payments as you agree to do. Carefully examine the conformation letter you receive; make sure that the terms you have requested are being met or make sure you are satisfied with the new terms offered to you.
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