How to Write a Debt Settlement Letter - Step by Step Guide

March 14, 2010 - PRLog -- The key to doing this is to educate yourself on the best techniques to get your creditors to come to an agreement regarding the settlement of your account, and this includes the very important step of writing a settlement negotiation letter. There are a few steps to writing one of these letters, and following is an outline.

Natalia Osorio Editor of the "Best Debt Settlement Companies" website -- http://www.BestDebtSettlementCompanies.org -- pointed out;

“…The first step in writing a debt settlement letter is to explain your financial situation, and explain that you have been unable to make any payments in the past few months due to financial hardship. Give them all of the details and explain how you got into your current situation. Do not hold back. Telling the truth will make it easier for them to help you settle your accounts. Give them the amounts you owe and roughly how many accounts you have that are currently past due. This will tip them off to the fact that you are a big risk, and that they should settle the account in any way they can…”

In the next paragraph, explain that you will be able to pay blank amount of money by a certain date, preferably a date that falls within the current month. The amount you offer to settle for should be about 50 percent of what you owe, but you need to make sure you can actually follow through on the amount you offer, otherwise they will restore your balance to the entire past due amount, and will continue their collection efforts.

In the third paragraph, you should explain to them that besides bankruptcy, debt settlement is your only other option, and if you do not reach a reasonable agreement within the time allotted you will be forced to file bankruptcy in order to seek relief from this debt as well as others. The word bankruptcy is a very powerful word for creditors when it comes to past due accounts. Their main goal is to get as much money as possible, otherwise if you file for bankruptcy they will get nothing. Them coming to a settlement offer on your account is a big benefit for them if the alternative means that all of your debts are going to be discharged by the bankruptcy court.

“…In your letter, make sure that you follow the correct format. Include all of your information, including your name, address, and account number…” N. Osorio added.

Further Information By Visiting; http://www.BestDebtSettlementCompanies.org