Credit Card Debt Settlement Letter
Are you in a position where you have an outstanding balance on your credit card and due to a financial crunch or other circumstantial reasons you are now unable to pay it off in full? Well, there is a way of resolving this issue and the way to resolve it is to negotiate it for a viable amount. But don't even think of stopping the payment without a notification to the credit card company. This would only lead to legal consequences. Besides legal consequences, you will also be blacklisted by the banks. To avoid this, one must follow proper procedures, and in case of negotiating for a certain amount, writing a credit card debt settlement letter is the most appropriate and effective way to save yourself from getting into trouble. Settling credit card debt yourself is not so difficult as long as you carefully follow the right procedures.
With the help of a credit card debt settlement template illustrated in this article, you can learn about how to write a debt settlement letter. After all, writing a credit card settlement letter is anytime better than filing for a bankruptcy. So, spare some time, letter writing is all that you need to do in order to avoid all the possible complications in the future.
Credit Card Debt Settlement Letter Template
Given below is a settlement letter in a structured format. The information on what is to be included is specifically given in a form of a template to give a better understanding on the essentials of such type of a letter.
| Date Your Name Your Address Your Phone Numbers Your E-mail ID Credit Card Number Account Number Name of the Credit Card Issuer And Address Salutation: Dear (Name of the Credit Card Issuer), First Paragraph: Introduce yourself and provide the account details including account number, the current interest rate and the total outstanding balance (only stating the account number here would just be fine) so that the reader can relate to the intentions behind writing this letter. Second Paragraph: In this paragraph inform the credit card issuer that you intend to settle the debt on the mentioned credit card. Explain your financial situation and the reason for settling the outstanding balance. Third Paragraph: Once you've explained your financial situation and the reasons for it, state the settlement amount that you can manage to pay. Also mention the specific date by when you can start making the payment once you get a consent from the creditor. The mode of payment and whether the settlement amount will be paid in full or in installments also needs to be stated in this paragraph. Fourth Paragraph: To protect yourself from any financial risks in the future, state the terms of payment clearly in this paragraph. Clearly mention that the creditor in your credit file must declare your debt as "paid in full". Also state that the payment will only be made after getting a written confirmation from the creditor stating that they agree on this settlement. Conclusion: Conclude the letter with a polite request to your creditor to consider your problem and understand your financial condition which requires urgent attention. Yours sincerely, Your Signature Your Name |
An important point to remember while writing a debt settlement letter is that you need to maintain a professional and sincere tone. As this is a business letter, the writing etiquette must be followed. Remember, this letter is a form of request and therefore it should be made in a polite way. You are bound to pay the outstanding amount in full; however, you are requesting the creditor to consider your case as you are not in a position to make full payment.
