You may be able to settle your debt for less than the balance owed. If you can reach a compromise with creditors or collectors over a particular debt you may be able to avoid or end litigation. But when settling a debt with a creditor or collector, you MUST maintain a record of your actions. The actual settlement is what both parties have agreed to accept as payment, so document every word; the free sample letter debt settlement letter below may help.
And before settling consider it may be good to learn if you have settlement leverage based on a collector or creditor’s violations of your consumer financial legal rights, including whether the statute of limitations for enforcing this debt has expired (in which case consider using this free expired statute of limitations debt dispute letter). A free, no obligation consumer financial legal rights and debt help analysis from Debt Help Lawyers in your state may help you find a debt relief program that is right for you. Call 888-332-7252 now and speak to a live person who wants to help.
Free Sample Debt Settlement Offer Letter
Today’s Date
Your Name
Home Address
Phone NumberAttention: {name of collector or collection agency}
AddressRE: 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. Use these Mailing and Record Keeping Instructions .