Debt Settlement Letter, Sample & Format
A Debt Settlement Letter is written when the person cannot pay back the entire amount that they have borrowed from a person. No matter if it is a credit card debt, payday loan, medical debt or any other kind of loan or debt, the creditor or debt collector will accept as little as 25% of the total amount of money borrowed by you when they know you cannot afford to pay the entire sum of money.
If the need arises for a debt settlement or negotiation then giving out the required documents and important papers that would prove that you can not pay the entire amount and settle to the amount requested by you will be the best option for them. Such proofs can be pink slips, an unemployment letter that shows you have lost your job or bills of your serious medical illness for which you have spent a lot of amount of money and hence cannot pay the debt.
Some creditors or debt collectors will settle for this kind of agreement as they feel this is the best option, maybe not because they care for you but because they feel they will at least be able to grab as much as you can offer for now.
10- Dunkin Apartments,
4- Huston Bungalows,
Light House Street,
I am writing this letter to inform you that I haven’t been able to pay the debt due last six month as I am facing a lot of financial crisis. I very well know that according to the contract I have to pay the entire debt and being kind towards me you haven’t levied any interest charges on the money I borrowed, but due to my hardships I haven’t been able to pay the money and won’t be able to pay it even now.
I have lost my job and had has a bypass surgery since I had a heart attack last four months. I lost my job cause due to my heart condition I used to take leaves often. Because of which they had to replace me or else the company would face losses and all the money I had earned over the years was spent in my surgery because of which I don’t have enough money to pay the entire amount back to you.
Thus I have decided that I will pay 50% of the total amount right away if you are agreeable to that. I have enclosed all the required documents that you might need to refer to while taking a final decision.