Writing A Letter To Creditor Asking For Debt Settlement - 3 Good Tips

By Author: J.J. Yong
Total Articles: 963
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Hiring an attorney or a debt settlement company to assist you to reduce your debt involves certain costs. If you want to save the expenses, you are advised to self-negotiate your debt with your creditors. One of the most powerful tools in getting rid of your outstanding balances is through settlement letter.

Here are 3 useful tips I would like to share with you:

Tip 1: Find out the terms and conditions of your debt

Before you put your request in writing, you need to read all the terms and conditions of your debt carefully. It is important for you to know the late fees, surcharges, interest rates and over-the-limit fees that apply.

Tip 2: Gather sufficient fund to settle your outstanding balances

Although the creditors are not required to assist their debtors legally, during economy crisis, most of them are willing to accept settlement proposal. Hence, you should propose a reasonable settlement amount in your letter. But before this, you need to make sure that you really have the fund in your account. You can make your first offer relatively low. If your creditors reject your offer, you can ...
... then increase your offer gradually in your second letter.

Tip 3: State the hardship you are facing honestly

In order to convince your creditors to reduce partial of your debt, it is important for you to inform your creditors about the hardship you are facing in a sincere way. State the reason in a summarized form.

Last but not the least; after you have written your letter, you are advised to get a debt negotiation counselor or a lawyer to read through your letter so that you can avoid inconsistencies or unnecessary items.
For more information about debt settlement letter and debt settlement companies, visit DebtSettlementEssentials.com.