Barring Bankruptcy - How To Seven Splendid Tips For Writing A Winsome Debt Negotiation Letter

By Author: J.J. Yong
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For most situations in life, conquering your fears is half the battle won. This is no exception in the case of writing a debt negotiation letter. However, you need not be apprehensive about how to get that letter written. Here are some useful tips to help you with the process.

#1 Defining The Details

Begin by first of all making an honest and detailed evaluation of your current situation. Examine all relevant bills which specify what amounts you owe to your creditors, your present payslips and savings account balances at the bank and any other related documents. Determine how much you actually owe and compare this to what you actually have on hand to pay off these debts. Make a decision about what you can realistically afford to repay to creditors and firm up the details of the proposition you will make to your creditors. This will form the basis of the content for the letter you are about to write.

#2 Point Of Reference

Look for samples that you can refer to as a guide when drafting your own letter. There are plenty of templates you can easily access from online, and you should take the time to look ...
... through them. Some websites may even provide useful guidelines on what content you should include in your letter and this might be worth reading through to ensure you haven't missed out any important points.

#3 Get Cracking

Even if you can't figure out exactly how to put your words together, just start off by penning down in point form what you intend to say in the letter. This serves as an outline that you can expand on as you go along. Remember to include the following items:

Explain why you are writing this letter and the nature of your current financial circumstances
State the original terms of your loan: initial instalment amount you paid, interest rate, duration of the loan
Propose the new amount you intend to pay as settlement of the debt and express to them the need for their approval
Make a request that your creditor remove records of late payments of the debt from your credit report
Ask for a signed agreement if your creditor decides to agree to the terms of the new arrangement that you have proposed

#4 Remember Your Etiquette

It is crucial that you maintain a polite and respectful tone in your letter. Failing to do so may prove to be a grave mistake since it may cause creditors to view your request unfavourably. This would defeat your purposes altogether, so it's definitely wiser to keep up your good manners right from the very start.

#5 Cash In On Clarity

Think through carefully how you will explain your situation to your creditors. Your choice of words can either serve to help or hinder your objective of getting their approval. Make sure you express yourself clearly, leaving no room for any ambiguities or unnecessary doubts on the part of your creditors. If it helps in any way, include any supporting information or details that can further convince them on why your proposition is a good idea.

#6 Edit To Eradicate Errors

Hardly anyone writes anything perfectly the first time around. That's why it's important to re-read whatever you have already written and to check for any loopholes in your explanation. Also, you may need to correct any spelling or grammatical errors you might have made along the way. Make sure you don't send out your letter to your creditors without having done some editing work on your letter first.

#7 Follow Up

If you do not hear anything from your creditors after a reasonable period of time has elapsed, you might want to consider calling them via telephone to check on things. On the other hand, if your creditor has already agreed to proceed with what you have suggested in your letter, make sure to retain all the documents pertaining to your settlement agreement. Send copies of your creditor's settlement letter to the credit bureau and request for the debt to be removed from your credit report records when two to three months have passed after you have settled your debt.

Final Words

Now that you have read through these tips, it's time for you to get down to writing that letter. Contrary to what you may have believed at first, composing a debt negotiation letter is not quite as scary as how it might have seemed at first. Not only is it achievable, it is something that you should not procrastinate in doing since you may be well on your way to attaining the financial freedom that you desire.
For more information about debt settlement letter, visit DebtSettlementChoice.com.