Dynamic Wealth Management Headlines:How to Write a Sample Debt Settlement Letter

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These days, perhaps a limited number of people have not come across the word – debt. Actually, today, most of us are under huge debt burdens and a few find the right way to get out of it. Though there are many debt relief options, debt settlement may be the best option as per your condition. However, in a debt settlement, you have to write a debt settlement letter to your creditor. If you are not familiar with a debt settlement letter, you can go through somesample debt settlement letters over the web.

Does Debt Settlement Affect Your Credit Score?

Though there is a myth prevalent that debt settlement never affects your credit score, in reality it does. When you succeed in doing a debt settlement, the mark of the debt settlement remains on your credit report. A debt settlement mark on your credit report always compel your credit score to fall around 200-250 points. However, if you carefully start paying off your debt amount, this blemished credit score can be easily restored within the next 6 months.

Sample Debt Settlement Letter to Send to Creditors

When you write a debt settlement letter, keep in mind the following:

• Be very firm on the amount you offer
• Include every financial hardship and stand professional
• Remain prepared to pay-down the offered amount immediately once the creditor accepts it

Debtors may make use of the sample debt settlement letter provided below while they write their own.

Debt Negotiation Sample:

Address

City, Sate, Zip

Date

Collection Agency Name

Address

City, State, Zip

Reference #: 2752136

To whom this may concern,

This is to let you know that due to some financial crises, I could not be able to make my monthly payments toward my debt and for that, the company has transferred my account to the collection agency. Let me make clear that I am still not in a situation to repay my debts due to my mortgage and medical bills.

As I don’t want to walk ahead with this debt burden, I can offer $1000 of the $2,500 owed. Frankly speaking, I can’t offer a penny more than that. If you can accept the amount, I can immediately send you the money through a registered post once I receive a letter from your collection agency stating the amount and a promise to report to all credit reporting agencies in which your company has reported to.

I look forward to hear from you in this regard and hope to close this account as soon as possible. Thanks for your precious time.

Sincerely,

Name of the Account Holder

Signature

Archive for the ‘Practice Management’ Category

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It is not about price, it comes down to trust

Tuesday, September 20th, 2011  |  Filed Under: Practice Management

“The demand in finances doesn’t respond to price,” Trott says. “Having a lower price doesn’t guarantee you more business. It’s not really about the price. It’s about the quality of service.”

There’s a great article in RIAbiz.com about pricing advisory services. It’s based upon a study conducted by PriceMetrix showing that advisors who didn’t lower their fees in the aftermath of 2008 market are much better off today than those who decided to reduce their fees.

This is more evidence that clients are seeking good advice from trustworthy advisors more than a deal on the management of their financial affairs. Take a look at the article

Clients Are Increasingly Using Multiple Financial Advisors

Wednesday, August 17th, 2011  |  Filed Under: Practice Management, Uncategorized

This recent article (see link below) really caught my attention. It is a very enlighting that the statistics discussed indicate many investor clients have determined that they can fend off challenging markets and volatility by engaging more than one financial advisor to handle their financial affairs. Moreover, the more wealthy the client is, the more likely they are to utilize many advisors. Perhaps diversification is part of the driver, but this trend sure appears to be an opportunity for seasoned advisors who have the platform capabilities to efficiently organize the clients’ data, reports and recommendations. Few firms provide advisors with the right wealth manager tools to position themselves for this type of role, and it’s it fairly challenging for individual advisors to scale their operations to offer these kinds of capabilities. Advisors who position selves with a firm that supports a wealth manager role will have much greater success serving these types of the clients.
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