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Writing Letter To Creditor

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    Writing letter to creditor is one of the communication method we recommend when it comes to debt payment concern. The letter serves as black and white for future reference in case your creditor accept the alternative debt payment request method and answer back with debt settlement letter.

    It is important to keep the debt settlement agreement to cancel the remaining debt in writing as disputes can happen years later.

    If you’re one of those who choose to negotiate your own debt, the first thing you want to do is learn how to write a debt negotiation letter.

    Refer the negotiating letter writing as below of an alternative payment plan with creditor for past due payment or delinquent account.

    Debt Negotiation Letter

    (Sender Name)
    (Sender Street Address)
    (City, State, Zip Code)


    (Recipient Name)
    (Recipient Title/Position)
    (Organization Name)
    (Recipient Street Address)
    (City, State, Zip Code)

    Dear Creditor,

    RE: Personal Credit Card – Account Number:001122334455

    This letter is a written request for a temporary change in the repayment terms of my credit card account.

    I am currently going through financial crisis and may not be able to follow the current payment plan.

    I would appreciate your co-operation in making this payment plan effective shortly. I request you to accept a monthly payment of $ABC instead of the regular payments of $XYZ made on the (specify date) of each month.

    I will make arrangements for payment within the next 7 days upon receipt of your signed acceptance.

    I hope you will consider this to be fair and responsible settlement. I shall begin making regular monthly payments as soon as I recover from this financial crisis.

    Your co-operation during this difficult time is highly appreciated.

    (Sender Name)
    (Sender Title)

    Remember to choose your words wisely as your debt negotiation letter could be used against you in court. Click here if you are looking for how to write an apology letter for late payment.

    » Sample Debt Settlement Letter