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
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