Debt Settlement Letter - 4 Tips On Non Verbal Debt Negotiation

By Author: J.J. Yong
Total Articles: 962
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A debt settlement basically comprises of 3 basic procedures, i.e. request for debt reduction, acceptance of settlement proposal and commitment to make payment. In order to start the process, a formal proposal from the debtor is required. A debtor must write in to negotiate with the creditors to request for debt reduction.

All the while, for people who are not good at business writing, bargaining verbally is always much easier than non verbal negotiation. However, in the process of eliminating your outstanding balances, negotiating through formal letters are more proper and professional. If there is any dispute, you can always have documents to refer. Here are 4 useful tips you can refer if you intend to write a settlement letter to your lenders:

If you have a few creditors, before you start writing the letter, first thing first, you need to know who your original creditors are. Sometimes, the creditors have sold their clients' accounts to the debt collection agencies. Hence, you are advised to pull your credit reports from all three major credit bureaus and double check your credit file. You are reminded not ...
... to write any letter until you have verified who you actually owe the money to.
In order to convince your creditors to accept your settlement offer, you MUST be honest. You are not supposed to give excuses. If you fail to make your payment to your lenders, just inform them honestly your current situation. In most of the cases, when a debtor approaches his or her creditor in a proactive manner, the chance of obtaining the acceptance is always higher.
It is no point for you to use story telling technique in your letter. Don't gain sympathy using this method. The best way to prove your financial situation to your creditors is through the supporting documents. For instance, if you have been retrenched, you can prove your letter given by your ex-employer to your creditors. If you are suffering from serious sickness, you can attach your medical bills.
What is the most important message a debtor needs to convey in a settlement letter? I would say it is the commitment from the debtor. When you are writing your letter, make sure that you state clearly that you are committed to making payment if the settlement offer is agreed. The creditors will definitely turn down the offer if the debtor can't provide a specific date when they can make the payment.

One good thing about non verbal negotiation is you can hide your emotion from your creditors. You will not offend your creditors when you are bargaining with them.
For more information about writing debt settlement letter, visit DebtSettlementLetterTips.com.