Debt Consolidation Letter To Creditors

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Debt Consolidation Letter To Creditors

How to write a letter requesting debt settlement

Many people think about debt settlement if they can offer a lump sum up front, usually less than the amount owed. In the hope that the creditor will accept this offer and settle the debt.

This will allow you to get rid of your debt earlier and eliminate the need for repayments.

Here are some guidelines on how to create a letter proposing debt settlement.

How to write a letter proposing debt settlement

It is important to present a complete and final debt settlement proposal to creditors in a professional manner. Sending a letter explaining your desire to settle your debt, the amount you are willing to pay, and when you can do it is important.

Your letter of proposal for debt settlement must be formal. It should clearly state your intentions and what you expect from creditors. Your creditor will need this information to locate your account in their system.

  • The account will display your full name
  • Your complete address
  • All account numbers and reference numbers linked to your account

These should allow creditors to locate all relevant information about you and confirm your identity when they receive your proposal for debt settlement.

Debt settlement proposal letter template

Writing a letter in today’s digital age can seem daunting for many people, especially when it is so important. Below is a sample of a letter to settle debt.

Copy and paste the following into a Word document. Fill in the blanks or customize it to your liking.

[Name creditor organization] [Your name, address]

[Write creditor’s address]

[date]

Account number:[insert your account number here]

Dear Sir/Madam

I am writing to inform you about the amount of money you claim payment for on the account.

Due to financial reasons, I cannot repay the entire amount.(explain your current situation that would prevent you from repaying the debt in full, so that creditors understand your situation)

Instead, I’d like to offer the total PS[insert amount you can pay]As a final and complete settlement.

Accepting this agreement means that you and any associated company cannot take further action against me to enforce or collect the debt. I will also be released from any liability.

Also confirm that you will mark my credit agency file with the above amount to indicate that you have accepted it as the final settlement and that the account has been closed.

I can pay the amount that I have offered in a reasonable time.[insert the time you can pay]Once you accept my offer, I have received written consent.

Please confirm the address to which you wish to send payment.

Yours faithfully

[Your full title]


This letter clearly outlines your intentions and requests that the creditor do what you want. If you are offering a debt settlement, we recommend that you use the same structure as before.

Before you send money to a creditor, make sure that the creditor accepts your offer in writing. This written confirmation should be kept safe in case of any disputes in the future. You can use this to prove that you have signed the agreement.

Remember that if you settle your debt early, it means you aren’t paying it in full. It will appear as partial settled on your credit reports instead of fully settled. This could impact your ability to get credit in the future as it may suggest to future creditors that you might not be able pay the full amount borrowed.

 

Tags

registered charity
credit card
registered in england
credit counselling
statute of limitations
communicating with creditors

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