Agreement for debt settlement with creditor or collection agency
If your creditor (or collection agency) makes an offer for settlement of your debt, confirm it in writing before you make a payment. Use the Debt Settlement Agreement Letter for putting down the terms and conditions of the offer and get it signed by your creditor. Here’s a sample letter for you to understand this better.
Your Address
Your Phone #
Department
Creditor’s Address
Dear Creditor,
Re: Account Number__________
In response to my recent conversation with your customer service representative, I’d like to present a complete assessment of my financial situation.
Unfortunately, I have a lot of debt and not enough funds to pay all my creditors. So, I’ll be able to negotiate and settle debt with a few creditors only. I have enclosed a copy of my financial statement with details of my monthly income and expenses. This will help you assess my financial situation and give you an idea as to why I have requested a debt settlement.
The final debt amount that we agreed upon is $_________. As part of the settlement agreement, I request you to co-ordinate with the credit bureaus in order to remove negative entry (late payment, collections etc) on my account from the credit report.
Given my situation, I hope you’ll refrain from taking further action against me as payment will be maintained as decided in the agreement. I shall review my financial situation on a regular basis and inform you about any change, positive or negative.
I hope you’ll understand my situation and co-operate with me in this hour of financial crisis. I look forward to receiving a written confirmation from your end regarding the debt settlement agreement.
Your Signature
Your Name
Comments