Debt Settlement Letter - How to Compose a Good Settlement Proposal

Do you know how powerful a debt settlement letter is? It can assist you to reduce your total debt up to 60%. Is it hard to believe?

Seriously speaking, if you can compose a good settlement proposal, getting rid of your outstanding balances is not a hard task. Let me show you how to prepare an effective letter.

First thing first, find out where and to whom your settlement proposal should be sent. You need to address the letter to the person in charge along with the contact information. At the same time, you are reminded to include a message line which states your loan account number clearly. Secondly, include your basic information, such as your full name, address and contact details in your letter. Thirdly, provide a brief outline of your current financial situation and attach the supporting documents to serve as proof. Fourthly, state specifically how much the settlement amount you would like to offer. If possible, you should justify the proposed amount. At the same time, you need to include the details of how the payment is made and how much debt you wish to be forgiven by your creditor. For the last paragraph, you need to highlight your terms and conditions in the letter. You MUST include a statement pertaining to how the debt should be reported to the three major credit bureaus. Request your creditor to remove all the negative entries from your credit file and report your account as "paid in full".

Last but not the least, in order to show your seriousness in settling your debt, you may choose to include a statement saying that if you fail to fulfill the terms of settlement, the creditor is free to pursue further collection effort against you. If you feel uncomfortable to include this statement, you may skip this.

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