What to Include in a Debt Settlement Letter

If you want to eliminate your debt through a settlement, writing debt settlement letters can be a crucial step. If you need to write a debt settlement letter, here are a few things that you may want to include. 

Debt Settlement

In order to write a debt settlement letter, it helps to understand what you are trying to accomplish with the debt settlement process. When you ask for a debt settlement, you are essentially asking the creditor to settle your account for one total sum that is less than you owe. It will help to keep this in mind while writing the letter.

Validation of Debt

One thing that you may want to include is a request for validation of the debt. Do not be rude about it, but ask the creditor to kindly prove that you owe the amount of money they claim. If they cannot prove it, then you do not owe the money. Sometimes, debt gets attached to the wrong account or name. Therefore, it is always a good idea to review the account first to make sure that you are dealing with the right figure of debt. 

Assert Your Intentions

Once you know that you owe the debt, you need to state clearly that you want to work with the creditor. Let them know that you are willing to pay them for the debt if they are willing to work with you. Building trust is a critical step in the process of debt settlement. They have to know that you are serious before they will consider working with you. 

Ask for Credit Help

Another thing that you might want to include in the letter is a request for help with your credit history. When a creditor reports your credit information to the credit bureaus, they can choose what they report. Therefore, if they have put negative statements on your credit file, that was by choice. Ask them if they would be willing to remove the negative consequences from your credit report in exchange for a promise to work with them and repay the debt. If they say no, you have lost nothing. However, if they agree to do it, you could help yourself tremendously. 

Do Not Threaten

When someone is threatened, they tend to lose the desire to help you. Many people use a debt settlement letter as a medium to tell the creditor what they think of them. They threaten bankruptcy and lawsuits and other things that are designed to scare the creditors. This is not the best strategy to take. Most large creditors are not scared by these threats. If you have honestly been considering filing bankruptcy, let them know. However, you need to do so in a respectful manner and let them know that you want to pay them back as well. 

Make an Offer

When you write a debt settlement letter, you need to include an offer of repayment. Look at your finances and tell them how much you can afford as a final lump sum. Be realistic, but at the same time, do not give them more money than you have to to settle the debt.

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