Writing A Good Debt Reduction Letter - A Step By Step Guide

By Author: J.J. Yong
Total Articles: 963
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The main purpose of writing debt settlement letter to the creditors is to reduce the total outstanding balances. In order to eliminate the financial burden at a faster pace, you are advised to draft the written proposal carefully.

Step 1: State your intention clearly

The most important thing is to get your subject matter clear and precise. You are not the only debtor to your lenders. Hence, to make things easier, you are required to include all your personal details, account number as well as your debt amount in your letter so that your creditors can access to their systems faster. Besides, you need to be clear about the length of the letter. It doesn't need to be a few pages. One page will be more than sufficient as long as your message is conveyed.

Step 2: State the difficulties you are facing honestly

In order to convince your creditors to accept your settlement proposal, you need to inform them about the hardship you are facing sincerely. Don't hide anything and don't exaggerate your problems. The creditors will assess your financial position themselves.

Step 3: State your settlement ...
... offer with commitment

Be specific with the settlement amount. Write down the amount which you can afford to pay. Besides, state the date which you can make payment if approval is given.

Step 4: State your condition

You are reminded to put your request clearly. It is important for you to get the creditors to remove all the negative items from your credit file. If they don't agree with it, you should continue negotiating with them before you settle your debt.

By following the guidelines above, I believe you are able reduce your debt in a more effective manner.
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