Debt Settlement Letter - How To Communicate Effectively

By Author: J.J. Yong
Total Articles: 963
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To get a good impression for you debt collectors, a debt settlement letter plays an important role. A formal letter acts as an important communication tool between you and debt collectors. There are 5 tips on debt settlement letters which you need to take note on.

Determine who your creditors are. Firstly you need to know clearly who you owe the money to. To get the name of the creditors right is the most important point to take note here. Just to think that if you write the wrong creditor's name, it's just like you pay the cheque to the wrong payee or giving the things which should belong to you to somebody else. Undeniably you will be vexed on this and please be aware on this money sensitive issue.

Debt settlement amount. Secondly the amount of the debt is also important. The debt acts as liability to you but it plays as an income or revenue to the opposite. Giving a scenario here, a friend of yours only pay you back $100 instead of $1000 for an iPhone that you had help to purchase! Will you just stay quiet saying never mind, the balance will be bear by me or will you shout back like an insane and pouring ...
... out all the harsh words after your friend stated that the amount given to you is just the correct amount, which is in fact - not? How will you think the relationship between you and your friend?

Payment mode. Thirdly, although payment mode seems like not that important in this settlement letter, in fact, it actually does. When you write in the settlement letter that you are going to direct credit the creditors to repay the debts, but when the due date comes, the company still yet to receive the amount deducted from your account, until find out that you actually have no money in the account, beware that you might get sue or involve in legal proceedings because of this.

Financial hardship that you are facing. Another important point to take note here, this is consider the climax of your debt settlement letter. The reason or main point of you writing this letter is to explain to creditors your hardship in paying off the debts and trying to persuade the creditors to give you more time to repay the debts. However, bear in mind that the reason given must be reasonable instead of just simple giving a fake reason to with hold the debts repayment time, you might end up paying more.

Suggestion on how to repay debts. Last but not least, the last part of your letter, you might need to include you suggestions on how you can pay the debts. This part depends on how much you can afford to pay within a reasonable time frame which is acceptable by the debt collectors and you. Alternatively, you could meet with the Financial Consultant to discuss on the matters, you might be given some useful suggestions which you could try with. To hold the debts is not a long term resolution in repaying the debts as you might end up paying more on the interest charged, try to pay as much as you could when you are available to. Still the old saying - saving is the best solution.
For more information about debt settlement program and debt settlement online, visit DebtSettlementChoice.com.