Writing A Debt Settlement Letter.
A Debt Settlement Letter is drawn up when a debtor is unable to pay the full amount of the money borrowed and an agreement has been reached as to what the settlement amount and payment terms are. It is required to have a debt settlement letter when negotiating debt and paying the new agreed settlement. The letter will be sent from the creditor(s) confirming an offer to settle the debt, the amount the debt is settled for, and the date at which it needs to be paid. It is crucial that all parties involved—collection agency, debt relief agency and the debtor, sign the document.
The agreement to settle debt and the settlement terms are best negotiated over the phone to speed up the process and ensure that everyone fully understands what the agreemet is. The verbal agreement also ensures a payment plan, if needed, until your written agreement is signed and settled. Never agree to pay off your debt without having the terms of the payoff documented in a debt settlement letter which is signed by all parties. Debt Settlement Letters are an agreement holding all the parties involved liable. In some instances, the debt that you thought was settled may resurface so the letter is your written agreement showing that you had resolved your debt.
A standard Debt Settlement Letter includes the following key points:
- The creditor/debt collector’s name.
- Drafted date of the letter.
- Debtor’s name.
- Debtor’s account number.
- Outstanding balance owed on the account.
- Amount that is being agreed to as settlement and satisfaction of the debt (less than the full amount owed).
- Terms and amounts of payments to be made.
- Date the payments must be received.
The settlement letter must reference that the account is being satisfied in full using a phrase such as “settled”, “settlement of this account”, “accepted as settlement in full”, and “paid in full”. Arriving at a plan that is affordable for you is exhilarating. Be cautious to not let your overzealous behavior allow you to overlook details. We want you to celebrate your success, but we want you to feel positive about your strides to success. The Debt Settlement Letter will serve as proof to your agreement with the collection agencies. Allowing you to celebrate without doubt.
If you have any additional questions about debt settlment letters please give us a call at 636.209.4481 or 888.727.4505. PCS Debt Relief Agency is a reputable debt agency with BBB A+ accreditation so you can be confident you are talking to experienced debt advisors.
Latest posts by PCS Debt Relief (see all)
- Living in the Dream Location on a Low Budget - February 11, 2019
- Is Bankruptcy the Right Decision? Seek Alternatives Before Making a Final Choice - January 28, 2019
- Smart Money Moves to Make in 2019 - January 14, 2019