Debt settlement letter

Writing a good debt settlement letter is essential for a favorable outcome when negotiating with your creditors.

There are Attorneys and Debt Settlement Services that can help you with your negotiation if you prefer not to do it yourself.

These professionals are knowledgeable in their field, but their help can be expensive and unnecessary when small amounts of debt are to be negotiated.

Debts that are considered good candidates for settlement negotiation include: credit cards, medical bills, department store cards, student loans, personal loans, bounced checks, auto, home...

Things to keep in mind when negotiating debt settlement:

  • Avoid negotiating over the phone with your creditor.
  • Don't look too eager to settle.
  • Make it clear to the creditor that you intend to pay the debt.
  • Explain that you are unable to pay the debt due to (detail your hardship).
  • Begin your negotiation outrageously low, the creditor will counter your offer or, if you are lucky, might accept it.
  • Get your terms in writing before you send any payments.
  • Send your debt settlement letter via Return Receipt Requested
  • Keep a copy for your records.
  • Agree to send them cashiers check only after you receive their letter of agreement to free up your credit.
  • Request a deletion of their statement to your credit company.
  • If the information is not deleted it really does not help your score to pay it of the debt.

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DISCLAIMER: The law will vary depending on your state, jurisdiction and the specifics of your case. The information provided by is intended for educational purposes only. The content on this site should NOT be considered professional legal advice or a substitute for professional legal advice. For such services, we recommend getting a free initial consultation by a licensed Attorney in your state.

Debt Settlement Letter
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