Debt Settlement Letters

Debt settlement letters will help you negotiate and validate your debts and understand how to deal with creditors or collection agencies in writing.

The term "settle" is used when you wish to pay less than the balance owed on a debt. Settling a debt is often used to reach a compromise with creditors or collectors over a particular debt in order to avoid or end litigation. The actual settlement is what both parties have agreed to accept as payment. Use the free sample letter below to draft your own debt settlement offer.

Feel free to use the letter below as your method of contacting your creditor to settle a debt:

Your Name
Home Address
Phone Number

Attention: {name of collector or collection agency}

RE: Collection letter dated {date of letter here} or phone call on {date of call here} reference account #: {account or reference number}

Dear Mr./Ms. {Collector's or Collection Agency's Name}

I do not agree that I owe as much as you claim I owe on the above referenced account. In an effort to save both of us a great deal of time and expense I am offering to settle this account for $ _______. 

If you accept my offer, please send written confirmation to my address listed above. Once I receive your written confirmation, I will mail payment to your organization within five business days. If you wish to discuss this settlement offer, I can be reached at (insert daytime phone number with area code). However, please understand that I will not make any payment until receiving written confirmation that you accept my offer.


Your Printed Name

Be sure to send this debt settlement letter via "return receipt requested" and keep a copy for your records.

If you don't feel comfortable in doing this yourself, don't panic.  Just find a service provider that is licensed in your state.

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Additonal Information

Looking for debt relief? Check out Curadebt.

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