When debts pile up in bills, receipts, red letters and the calls from your collectors starts pouring in, then maybe it’s about time you did something about it. Before you think about turning your problems over to the professionals, try saving the fees and doing it yourself, by writing a debt settlement letter.
What you need to know is what to pen down in your letter. First thing first, know who you are writing your letter to, not only get to know the company of your creditors but get to know the exact name of the person in charge. Next, always introduce yourself, so that your creditor will be able to identify your case with ease. Along with this, include contact details and basic personal information such as an address, occupation and so on.
Next, head on with the information of figures, state how much you owe and how much you want to pay. Do be realistic with this and pay at least 65% of your total amount. If you ask for a drastic reduction, your application would be pushed aside and all efforts would go to waste, so do be reasonable when doing this. Before putting words on paper, do the necessary calculations, putting the total amount against your monthly income. In addition to that, do state your monthly income and attach your pay slip or social security statement as proof of your basic household income.
Then, state out your reasons for being late or not being able to make full payment. Tell your creditors in detail of the reality of your financial situations, giving them the real feel of whatever situations you may be going through. This would be the most important part of your letter so be honest and precise. Also, make suggestions and ask for ways that you can settle your debt, depending on how much you owe and how much you can pay.
You would also want to include your method of payment and ask for an extended due date if you need the extra time. Once you’ve sent out your letter, wait for a week or two and if you don’t get a reply, call the center and check if they have received your letter. At times you may get rejected, but just keep trying.