How to Write a Free Debt Settlement Letter Sample

Writing a debt settlement letter can free you of your debt situation and correct your credit rating when negotiated properly. These free ideas will help you write a proper debt settlement letter sample.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• Computer with word processing capability or typewriter
• paper
• copies of credit ratings
• debt settlement amounts

1. Write in your name, address, and zip code followed by today's date at the top.

2. Put the collectors name, address, and zip below followed by your account number for reference.

3. Address the letter to the person most cooperative by phone if you can.

4. Explain or reiterate your previous debt situation and your current resolutions. List your debt dollar amount and any improvement to ability to pay such as new job or source of income.

5. Write your proposed debt settlement amount and your terms. Make sure to include maximum amount you are free to pay and only when you recieve letter agreeing to change your credit terms.

6. Write your name, signature, and current date followed below with your printed name and printed date.

Tips & Warnings

• Negotiate a debt settlement agreeing to payment only if you receive a letter indicating a notification to your credit company for 'Paid As Agreed' or to request a deletion of their statement to your credit company.

• Never agree to terms such as add payment to pnl or charge off for additional time

• Agree to send them cashiers check only after you receive their letter of agreement to free up your credit

Resources

• Printable Budget
• Debt Settlement Solutions