When dealing with creditors, I suggest using these letters when offering a settlement to pay off a debt that is owed. If the debt has already been sold to a collection company you can probably settle for less then 50% of the original balance.
To Whom It May Concern, According to your records, I owe an outstanding balance of $_x,xxx- _, in reference to account number ___000-00-000000__________. I feel I have a moral obligation to pay this debt I owe; however, I do not have enough money to pay you in full. I would like to offer you a settlement amount of $_35%-_ to consider this account paid. Please accept this offer, as it is all I can afford. If you accept this offer; please send me a letter that you are in agreement to the following terms: 1. You accept a one time lump sum payment of $_35%-__ to satisfy my debt of $__x,xxx-__ owed to you. 2. You agree to cease collection attempts. 3. You agree to report to the credit bureaus Experian, Trans Union, and Equifax that this debt has been satisfied. Preferably that the debt has been paid in full; however that decision rests on your shoulders. 4. You will send proof of satisfaction to me stating that the debt has been satisfied as soon as my funds have cleared. When I receive your letter I will immediately send you the agreed amount so I can get this burden behind me. I appreciate your consideration of my offer and thank you for your time. Sincerely, Your Signature Here Name: Your Name Here Address: Your Address City, State Zip Phone Number: ___1-000-000-0000___________________________ Letter Two This letter is used for obtaining a written commitment from a creditor for which you are trying to settle with by means of a lump sum payment. This is a very important step when settling any account to ensure that the terms will be honored and the information will be reported to the credit bureaus. To Whom It May Concern, I am writing to reaffirm our agreement regarding the settlement of a debt that I owe to your company. The terms agreed upon were: 1) “I”__ Your Name Here ______, agree to pay______ Creditors Name_____ the amount of $ Amount in full satisfaction of all amounts that I owe you and YOU agree to accept this amount in full satisfaction of all amounts that I previously owed you. 2) I agree to pay the above amount in one installment for the amount of $ Amount. I will render a check on _MM/DD/YY_. I will mail this payment to your office located at: Address:__CreditorsAddress__________________________________________________________ (If incorrect please correct address here): __________________________________________________________________________________ 3) My non-payment of the full amount when it is due will leave me in default. If I am in default, you may send me a written notice advising me that, if I do not pay the overdue amount by a certain date, the entire unpaid balance will become due within 30 days after the date on which the notice is delivered or mailed to me. 4) Upon discharging this debt, you agree to notify each credit bureau to which you report credit information, that any adverse credit information regarding my account with you is no longer verifiable, and that it should be deleted from my credit report. If you agree to the terms and conditions contained herein, please sign this agreement in the places provided and return this document to me at the address shown below. Terms and conditions accepted and agreed by: Company_____________ Name & Title ___________________________ Signature ___________________________ Sincerely, Your Signature Here Address: Print Your Address Date: MM/DD/YY |
