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Debt Settlement Letter

If you want to settle a debt with a creditor or collector, you MUST maintain a record of your actions. But before settling, don’t you think learning your options, and whether you have settlement leverage based on a collector or creditor’s violations of your consumer financial legal rights, is a good idea? If you agree, click here for a FREE consumer financial legal rights and debt help analysis from Debt Help Lawyers in your state.

Debt Settlement Letter

The term “settle” is used when you wish to pay less than the balance owed on a debt. Settling a debt is often used to reach a compromise with creditors or collectors over a particular debt in order to avoid or end litigation. The actual settlement is what both parties have agreed to accept as payment. Use the free sample letter below to draft your own debt settlement offer.

Feel free to copy and paste the letter below into your word processor.

Download PDF Here

Free Sample Debt Settlement Offer Letter

Today’s Date

Your Name
Home Address
Phone Number

Attention: {name of collector or collection agency}
Address

RE: Collection letter dated {date of letter here} or phone call on {date of call here} reference account #: {account or reference number}

Dear Mr./Ms. {Collector’s or Collection Agency’s Name}

I do not agree that I owe as much as you claim I owe on the above referenced account. In an effort to save both of us a great deal of time and expense I am offering to settle this account for $ _______. (see alternative text below)

If you accept my offer, please send written confirmation to my address listed above. Once I receive your written confirmation, I will mail payment to your organization within five business days. If you wish to discuss this settlement offer, please communicate with me in writing only, I don’t want any calls at any phone numbers. Further, please understand that I will not make any payment until receiving written confirmation that you accept my offer.

Sincerely,

Signature
Your Printed Name

 

Alternative Text

I do not agree that I owe as much as you claim I owe on the above referenced account. In an effort to save both of us a great deal of time and expense I am offering to settle this account by making payments in the amount of $ ___________ every month (week or two weeks.

Send this debt settlement letter via “return receipt requested” and keep a copy for your records.

Be sure to use the Mailing and Record Keeping Instructions

If the Statute of Limitations for enforcing this debt has expired, consider using this free expired SoL sample letter

Or, let a Debt Help Lawyer do the work for you and find a debt relief program right for you!

 

confidential informationThere may be instances where discussing your situation over a public forum could potentially compromise your interests. On these occasions we will contact you directly via email in order to answer your inquiry in a confidential manner.

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