How to Write Debt Relief Letters

A professional debt relief letter can help start the settlement process.

These days it is difficult and sometimes impossible to go to college, purchase a car or home, or start a business without going into debt. Failure in the ability to manage these debts, as well as overuse of credit cards and medical bills, can contribute to debt problems. The first and usually most effective step towards debt relief and settlement is to write a debt negotiation letter to the creditor, which may be a bank, credit card company or medical provider.

Instructions

1. Type your full name, address, phone number and email address at the top of the page, giving each piece of information its own line. List your current address or the address associated with the account if it is different.

2. Create a double space and type the creditor's name, such as "HSBC Bank," the department name and the creditor's address. Double space again and type the formal greeting, typically "Dear Creditor," and below that type "Re: Account Number," followed by your account number.

3. Create a double space and type your first paragraph. Express your gratitude about the fact that the creditor is or may be willing to negotiate your debt settlement. Explain that you would like to resolve the issue and give a specific dollar amount that you want to offer as payment. This amount will be less than what you owe, but should be an amount that you, in fact, can and are willing to pay.

4. Create a double space and type your second paragraph, in which you will explain reasons why you are unable to pay your debt at this time, and perhaps will not be able to pay it in the future. You don't have to divulge personal details about your life, but often the reasons listed include medical problems and illness, unemployment, family tragedy or even the lack of desire to pay late and over-the-limit fees associated with a credit card.

5. Insert another double space and begin the third paragraph of your debt relief letter. Request that, should you and the creditor agree on the offered settlement amount, they remove negative data associated with the account from your credit report. You may want to be specific and ask for a "Paid in Full" status and include a time limit, such as 30 or 60 days, to complete the credit file update.

6. Insert a double space and type the fourth and final paragraph. Request that the creditor associate sign this letter of agreement and return a copy to you. State that if an agreement has been made (and signed), you will immediately make the payment promised. At the bottom of the page, type a formal closing, such as "Sincerely" and create a triple space. Type your full name, print the document and sign in blue or black ink above your printed name.

References

• Debt Settlement Lawyers: How to Write a Debt Negotiation Letter