If you are looking for how to write debt settlement letter to get yourself out of debt, bear in mind to choose your words wisely as your agreement letter could be used against you in court. Here’s an brief overview on what you should include along with a sample letter.

First write your name – address – zipcode – today’s date at the top of the letter. Put the collector’s name – address – zipcode below followed by your account number for reference.

In the following content, you may write your proposed debt settlement amount and terms.

You have to include maximum amount you are able to pay and only when you receive letter agreeing on your proposed settlement.

Sample Of Debt Settlement Letter

(Sender Name)
(Sender Street Address)
(City, State, Zipcode)
(Date)

(Creditor Name)
(Creditor Street Address)
(City, State, Zipcode)

Re: Your Name
Creditor’s Account Number
Your Social Security Number

Dear Creditor,

I (Your Name), would like to settle the outstanding debt with (Creditor). (Specify good reason on why you have not paid the debt). I have strong interest in paying back the debt.

Due to the drastic negative projection of my financial status, I will pay (Creditor Company) the amount of $ABC as full settlement of this account.

Upon receipt of the above compensation, your company has agreed to change the entry on my credit report to ‘paid satisfactory’.

Negative credit information pertaining or resulting from this account such as ‘late payment’ or ‘charge off’ will be deleted from my report.

If you agree to the above agreement, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order in the amount stated above.

I hope you will consider this to be fair and responsible settlement. I am also extremely sorry for the difficulties that have been caused.

Sincerely,
(Sender Name)
(Sender Title)

You may refer on how to write letter to creditor in example of suggesting alternative payment plan to creditor for past due payment issue.

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