Debt Settlement Letter for Negotiating Your Debt

A Debt Settlement Letter is what you will need if you are trying to consolidate or negotiate any type of debt whether it be a credit card, personal loan, etc. The sample debt settlementletter provided below will offer you an alternative for dealing with creditors and debt collectors.

Free Sample Debt Settlement Offer Letter

Today's Date

Your Name
Home Address
Phone Number

Attention: {name of collector or collection agency}
Address

RE: Collection letter dated {date of letter here} or phone call on {date of call here} reference account #: {account or reference number}

Dear Mr./Ms. {Collector's or Collection Agency's Name}

I do not agree that I owe as much as you claim I owe on the above referenced account. In an effort to save both of us a great deal of time and expense I am offering to settle this account for $ _______. "OR" I do not agree that I owe as much as you claim I owe on the above referenced account. In an effort to save both of us a great deal of time and expense I am offering to settle this account by making payments in the amount of $ ___________ every month (week or two weeks.

If you accept my offer, please send written confirmation to my address listed above. Once I receive your written confirmation, I will mail payment to your organization within five business days. If you wish to discuss this settlement offer, I can be reached at (insert daytime phone number with area code). However, please understand that I will not make any payment until receiving written confirmation that you accept my offer.

Sincerely,

Signature
Your Printed Name

Taken from www.fair-debt-collection.com

If you and your collector come to a terms of agreement you can use this debt settlement letter to Agree to the terms:

Free Sample Debt Settlement Agreement Letter

Today's Date

(Creditor's name), the Creditor/Creditor's Representative and (debtor's name), the Debtor agree to negotiate and settle the debt under the following terms and conditions.
The Creditor and Debtor agree that the current outstanding debt is <$ balance amount>. Both parties agree that the Creditor will accept a cash payment of $_________ towards settlement of the debt in full. The Creditor agrees to compromise the debt under the condition that he'll receive the payment by [date].
If the Debtor fails to send in the amount agreed by, the Creditor shall immediately demand the payment of the original amount owed by the Debtor. (Creditor's name) also declares that he is authorized to act as an agent of the Creditor's company.
This agreement for debt settlement shall be binding upon the Creditor, Debtor and their successors and assignees.
Dated:
Signature:
(Creditor's name),
Creditor
Signature
(Debtor's name),
Debtor

If you are able to get a verbal negation from your creditor DO NOT TAKE THEIR WORD ON IT. Make sure to get it in writing.

You can use this sample debt settlement letter for verbal agreements:

Free Sample Debt Settlement Verbal Offer Letter

Today's Date
Your Name
Your Address
Your Phone #

Creditor's Name
Department
Creditor's Address
Date

Dear Creditor, Re: Account Number__________
This letter is to confirm the debt settlement offer made between myself and your customer service representative (over the phone) on [date].
I appreciate that your company has agreed to work with me in settling my debt. The amount that your representative and I have agreed upon to settle the debt in full is $___________.
I would appreciate if you co-ordinate with the credit bureaus and remove any negative entry related to this account. It'll actually help me regain a perfect credit rating.
I hope you'll find the above terms acceptable. If it is so, please sign this letter of acceptance and return a copy to me. As soon as I receive this signed acknowledged agreement, I shall forward you the settlement amount (as stated above) through a money order.
Yours truly,
Your Signature
Your Name

Taken from www.fair-debt-collection.com