If you plan to handle your debt settlement problems on your own, you will need to send written notice to each creditor. Written statements of intent and settlement offers must be sent by certified mail, return receipt requested. It is very important to keep a copy of each letter, the original postage receipts, and the returned receipt with the creditor’s signature.
To begin the debt settlement process, you must submit an initial settlement offer. This is also called an unsolicited offer. It’s a good idea to type the letter and sign at the bottom, as this indicates a willingness to deal with the debt professionally. In this letter, you will propose that you pay an amount of money that is less than the original balance. Start your negotiations by offering 50% of the original balance. For example, if you owe $2,000 on your ABC credit card, offer to pay $1,000 to pay off the debt in full.
Here is a sample letter for this process:
Consumer Name Today’s Date
consumer address
Consumer phone number
creditor name
Correct department name
Creditor’s full address
Dear creditor,
I am contacting you today regarding account number _______________________
After a long time of financial difficulties, I am now in a position to pay the debt with the aforementioned account number. I would like to ask for your cooperation in helping to resolve this debt. I am making a sincere effort to settle my debts and pay them off.
I would like to propose a full payment of this debt in the amount of $ _______. I propose that this amount be accepted as full payment of said debt. Additionally, I would like to request that all comments regarding late payments or charge-offs be removed from my credit bureau reports.
I am currently working cooperatively with several additional creditors for debt settlement purposes and therefore my funds are limited. For this reason, I have chosen to liquidate those debts that can be satisfied through liquidation proposals, such as the one I am proposing today.
A couple of my creditors have already made acceptable deals with me. I would like to include this debt in the account paid. If the above proposal is acceptable, I will pay the agreed balance in full. Please sign the bottom of this agreement. Keep the original for your records and send me a copy of the signed document. Once I receive the signed agreement, I will send you the agreed funds via money order in a timely manner.
Sincerely,
Consumer Signature
Consumer Printed Name
Date
