5 Tips To Write a Convincing Debt Settlement Letter
A debt settement letter is a formal letter that is wriiten by the debtor to the creditor so as to negotiate the total amount of the debt or extend the time period or reduce the interest rate of the loan. Therefore, it is essential that the debtors write convincing debt settlement letters to the creditors. This article highlights some useful tips that can help the debtors to write a convincing debt settlement letters.
Tips to write a settlement letter
The five tips that can help the debtors to write convincing debt settlement letters are given below:
Tips to write a settlement letter
The five tips that can help the debtors to write convincing debt settlement letters are given below:
- Be precise: The debtors should write the debt settlement letters within few pages. The settlement letters should be short and straightforward. The creditors don't have time to read long letters. In the very first paragraph of the letter, one should write his full name, address, contact details, account number, current interest rate, total amount of debt.
- Be honest: The debtor should clearly explain that he is very much interested to pay back the loan. He needs to explain why he is not being able to make the minimum payments in the last few months. He can even enclose some documents with the letter as proof.
- Be specific: The debtor should specify the date (within the current month) by which he will be able to make the payment. He needs to specify the amount of money that he can afford to pay. However, the amount should be at least 50% of the outstanding debt or the creditors may not even accept the letter. He should also specify how the payment will be made – lumpsum or by installment.
- Be polite: The debtor must convey the message in a polite manner. He cannot show his anger or use threatening words in the letter or the creditors will reject the letter immidiately.
- Be strict: The debtor should clearly state that the creditor should report his debt as “paid in full” on his credit file after he has made the payments.
These are the five tips that can help the debtors to write convincing debt settlement letters which can lead them to a successful settlement.
