Making an offer to a company to settle your debt for a lower amount means offering them a letter of intent as well as contacting them by telephone. You want to stay in close touch with your creditors in order to assure that they know your situation and that you are inclined to pay the debt.
Following up the phone calls with a letter of intent means taking pains to write an effective letter that lets them know you do want to settle the bill and pay at least something toward it. What is an effective letter of debt settlement?
To be effective the letter must include your intentions spelled out in writing, as well as the account number that you wish to settle and the terms that you can offer them. Usually if you offer them a fifty percent settlement you will receive a counter offer, but it’s still recommended that you begin with about 50-60% of the total of your debt when sending a letter to your creditor.
Set aside the funds that you promise to the company or if you cannot offer them a lump sum, offer payment of one quarter of that at a time in four equal payment to let them know that your offer is serious.
An example of such a letter is offered here.
Dear {company name},
Re: Your account Number
Having sustained a period of time when my payments fell behind, I find myself in a position to be able to make some reparation to your company for the balance of (account number). I am attempting to resolve my debt with your company and would be most appreciative of any assistance that you might offer to pay this debt more quickly.
I am proposing a settlement of (amount you can pay) toward the settlement of this debt and request that it be considered payment in full for the debt. In addition I ask that you remove any negative comments this account may have from the major credit reporting agencies.
I am able to pay the full amount by (x date) or to pay in four equal monthly installments of (dollar amount) payable on (dates)
I am currently negotiating with all of my creditors to arrive at a satisfactory solution for both of us. Having limited funds with which to work, in fairness to everyone, I would still like to pay your company for the credit the advanced to me.
If you find the terms of this proposal to be acceptable to please sign the letter and return a copy to me, and I will be pleased to offer you the agreed upon sum.
Thank you for your consideration of my proposal.
Sincerely,
Your signature
Comments on this entry are closed.