Sample Debt Settlement Letter debt settlement assistance call 1-888-505-2369 for a free consultation
Here is how to request a debt settlement:
Contact the creditor to whom you owe money. The collections agent may be much more receptive if you initiate the call instead of having to chase you around to get a response.
Tell the creditor how much you can pay. This is when you really have to make an attempt to bargain.
Don't feel bad about proposing a settlement. You may say something along the lines of, "I know I owe $5500, but I have $1900 sitting in an account. Can I send you that and we'll call it even?"
Prepare to haggle.
The collections agent is probably well-versed in negotiation, so don't expect your first offer to immediately be accepted. Demand the debt settlement details in writing. Don't pay the amount immediately over the phone, even if that is what the collection agent pushes you to do. You need to have the settlement information on paper and in your possession before you send the company a dime. Make sure the debt settlement letter is accurate. You need to ensure that the letter you receive from the collection agent is indicative of the deal you agreed upon.
Your Credit Report
Even with a debt settlement letter agreement, your credit report will reflect the account as having been legally settled for less than the full amount. Although a settled account can be a ding on your report, it is far preferable to a delinquent account on your report.
File the settlement letter away with your other financial documents. This is a letter you should always keep, no matter how many years ago the settlement occurred.
A SAMPLE debt-settlement letter
The following sample debt-settlement letter presents an offer from a collection agency.
LAST CHANCE FINANCIAL SERVICES, INC. 4624 South Green Apple Way Camden, New Jersey XXXXX
August 16, 2008
ID # 987654-30 Clarkston, MS 33821
Re: CitiBanker
Original Creditor: Citibanker Visa
Account Name [##########] Total Current Balance: [$22,498.39] Account #: [xxxx-xxxx-xxxx-4567]
[Debtor],
As we discussed last Tuesday, Last Chance Financial Services, Inc., hereby accepts your offer to pay $10,891.69 as a full settlement for the above-referenced account.
This offer will expire on 05/30/07. Thus, if Last Chance receives the settlement amount on or before 05/30/07, and if the funds clear, then we will consider the amount to be fully settled, and we will cease all further collection efforts.
No language contained within this letter changes or in any way restricts any of your legal rights, including the rights that were mentioned in the first letter we sent to you about this account.
THIS AGENCY IS ENGAGED IN THE COLLECTION OF DEBTS. THIS COMMUNICATION IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.
Sincerely, Joe Collection
800-773-3176, Ext. 8765 Account Representative
For further debt settlement assistance call 1-888-505-2369 for a free consultation.
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