How To Write A Credit Card Debt Settlement Letter

A credit card debt settlement letter is a letter written to a company from a debtor attempting to settle an existing obligation.

This letter may stipulate that all or only part of the balance be paid. It is best that the creditor get part of the debt amount paid than nothing at all.

Hector Milla Editor of the “Credit Card Debt Free” website — http://www.CreditCardDebtFree.org — pointed out;

“…Many times, this can be the most challenging part of getting finances back in order. There are debt settlement companies available today that help with this process. Debt settlement companies do have the expertise to contact creditors and obtain the best settlement deals. They usually have strong relationships with creditors which in turn will help you get more positive results from your settlement letters…”

A credit card debt settlement letter has to contain certain information, including the account number and personal information of account holder, the credit card balance, the proposed settlement total amount and the date the settlement will be paid.

A proper debt settlement letter should follow guidelines and steps:

1. Paragraph 1. This paragraph needs to inform the credit card company that you want to take steps to try to settle your debt with them.
2. Paragraph 2. Provide a short explanation as to why you want to settle this debt, such as an income loss, family hardship, unexpected expense or illness. Usually because payments have already been missed, the company will be glad to get back any of the money from you.
3. Paragraph 3. In this paragraph, state to the company the payment amount that you will be able to afford each month and when you will can start making payments.
4. Paragraph 4. This will be your closing paragraph. You should tell the credit card company that you are hoping they accept this arrangement and payment plan. Ask the credit card company to send you a letter of agreement if they accept your terms of repayment.

“…Many times, creditors will settle a debt for much less than the original amount owed. Sometimes, it does take more than one letter for an agreement to be reached. Creditors will often come back with a counter offer. Just because you are able to settle a debt does not mean that it will automatically be removed from your credit. Creditors will many times agree to remove a debt for a higher payment percentage; typically 60% to 80% of the amount that is owed is accepted…” H. Milla added.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.CreditCardDebtFree.org

Tagged with: Card • Credit • Debt • Letter • Settlement • Write

Filed under: Credit Card Debt Help

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