What to include in a settlement letter?
If you are under the debt of a credit card company or any such finance firm, you can clear it all by the means of a settlement. In this, you pay about 30 to 60% of the principal amount and get out of the debt. The lenders generally accept this offer as they are getting at least a major part of the amount, as compared to the risk of getting nothing. They might even decline it if you do not make a good offer. Thus, you should be very careful while writing a settlement letter. This is the letter you write to your lender and ask them to settle the debt. You should take a close look at a settlement letter sample before writing it. Also, you should definitely include the following things.
- Include the amount you are willing to pay. It should obviously be less than the principal amount, but not too less that your offer gets rejected. You can even add that you are ready to negotiate.
- Ask for a confirmation letter in return that can be kept as a proof of whether they accepted or rejected the offer.
- The lenders generally send a negative report to credit bureaus, which stays on your record forever. However, they do not necessarily have to send this report. So, you can request them not to.
You should use the settlement letter sample just for the format. The content should not be copied as it is. And try to be direct.
