Debt negotiation has become popular debt relief method in the past few years. You can use a service or negotiate your debt on your own. Sample settlement of debt letters is a good way of getting started with a self managed debt relief plan.
There are a lot of benefits to using a debt settlement company, but it is not possible in all cases. If you have less than $ 10,000 in unsecured debt, you will most likely have to do the negotiating on your own. But do not worry, there is lots information available online and it is not really that difficult to make debt settlement arrangements. The big advantage to doing it on your own is the money that you will save.
I have looked at several debt settlement letters and they include the following information:
Your name, address and phone number, your creditors name and address, you credit account number and social security number.
State that you would like to settle the debt and the reason you became past due. State the current outstanding balance and the amount you would like to settle the debt for.
The letter I saw had a list of settlement conditions that I do not think most lenders will be willing to grant and they are as follows: The account will be shown paid in full with no money owed, all litigation will be dropped with no future litigation and all negative entries will be deleted from all 3 credit reports.
There is nothing wrong with asking for these things, but when I worked in collections we would have marked the account "settled for a lesser amount" and they would not have removed valid negative entries on a credit report. Removing valid entries is not a common practice. There is no reason that a lender would do this. Unfortunately, they hold all the cards. You owe them money and they can sue you for it, if they desire.
In closing, you should state that a money order will be sent upon receipt of an acceptance of offer letter. Personally, I am in favor of negotiating over the phone and following the conversation up with a confirmation letter.