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How to Write a Debt Negotiation Letter

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From Quick Guide: Creditor Negotiation Know-How

Summary: When writing a debt negotiating letter, a person should tally up what is owed, come up with a reasonable amount that can be afforded, and be specific on when a payment can be made. Avoid putting oneself into greater debt by trying to make too large of a payment with help from a business analyst in this free video on financial planning and debt management.

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By Terry Kuykendall
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Terry Kuykendall is currently a budget analyst for the military in Washington. She is an accountant who has worked at firms helping people deal with personal and business debt.read more

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Video Transcript

"Here are some tips on how to write a Debt Negotiation Letter. First of all, you need to tally up everything you owe in your debts. You need to come up with a reasonable amount that you can afford. Start low. Because just in case you're denied that first negotiation. You have room to move up in the payment amount. Be specific on stating when you can make the payment. And always be sure that you make the payment on the day that you put in the letter. It is a binding agreement with your creditor on how you're going to pay this debt off. Make it reasonable for you, as far as the payment goes. And make sure that you can afford it. Don't put yourself into more debt or a bind. By thinking you can pay an astronomical amount, that you can't. So look at your budget. figure out, what you can afford to pay. Write it down in a letter. Address the letter to your debt, your debtor. And then, make sure you stay up with the payments. When you're supposed to make them."

eHow Article: How to Write a Debt Negotiation Letter

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