| Debt settlement letter plays an important role in | | | | hardship explanation must be clear and concise. It |
| the debt negotiation process. In my personal point | | | | is important to let the creditors know that you do |
| of view, this process can't be considered | | | | not intend to run away from your debt but you |
| complete if there is no written request from the | | | | have lost your financial ability to pay back your |
| debtors to their creditors. In return, the creditors | | | | outstanding balances due to certain reasons such |
| must send new agreements to the debtors to | | | | as loss of job, failure in business, suffering from |
| confirm their acceptance. | | | | serious health problems, etc. |
| Many people do not see the importance of writing | | | | - You are reminded to state your proposed |
| a payment settlement to the creditors. In fact, | | | | settlement amount in your letter. You should |
| writing this letter of request can help to dig the | | | | decide the amount based on your affordability. It |
| debtors out from deep debt. In general, during | | | | will be good if you also include the date of |
| economy downturn, many creditors are willing to | | | | payment. It shows that you are ready to resolve |
| provide "discounts" to their debtors. The creditors | | | | your problem if the creditors are willing to accept |
| either help to reduce the total debts or lower the | | | | your settlement proposal. |
| interest rates or waive the late fees. This will | | | | - You are suggested to attach the supporting |
| definitely assist the debtors to eliminate their | | | | documents (if any) such as letter of termination, |
| outstanding balances. If the letter is written in a | | | | medical bills, letter of business closure, etc. when |
| proper way, the debtors' credit ratings can also | | | | you submit your settlement letter. All these |
| be corrected. The debtors can negotiate with | | | | documents serve as strong proofs and they can |
| their creditors to "delete" all the negative | | | | help to convince your creditors to accept your |
| statements from their credit files. If the creditors | | | | settlement offer. |
| agree to do so, the debtors will be able to | | | | Last but not the least; you are reminded to make |
| protect their credit scores from being badly | | | | sure that the payment settlement you write |
| affected. | | | | really reflects your current financial position. You |
| Let me share with you some useful tips to write | | | | don't need to exaggerate how difficult your life is. |
| an effective settlement letter. | | | | Your lenders will definitely evaluate your financial |
| - When you are composing a letter, you need to | | | | situation before they approve your debt reduction |
| make sure that you inform your creditors about | | | | request. |
| the hardship you are currently facing. The | | | | |