Settle My Debts Letter

When you want to reach a debt settlement agreement with your creditors, you want to pay less than you owe. A debt settlement is a compromise between you and your creditors that you will pay a certain amount of money every month, below the original amount owed. Creditors would prefer receiving a little less money from you, rather than receiving $0 payment and having to sue you in court (which would cost them thousands of dollars). You can use this fact to your advantage! Use this debt settlement letter as a reference to send to your creditors if you owe any debts.

Click here to get an MS Word format version of this letter. A .doc file will open up and save it to your Desktop. This way you can easily retrieve the file.

Today's Date (dd-mm-yyyy)

Your Name
Your Address

Debt Collector's Name
Debt Collector's Address

RE: (Account # of Debt Owed, Customer Name & Type of Debt)

Mr/Mrs. Debt Collector,

I dispute the amount of money owed on this account (Reference Account ####) and I do not agree that I owe that sum of money. Instead of this, I am offering to pay $____ every month for the next ____ months or a lump sum payment of $____ to settle this debt for good. This will save us both a lot of time and money.

I would really appreciate if you reply to this letter and confirm acceptance of my above payment terms. In order to show you my commitment in settling this debt, I have also enclosed my first payment of $____ in paper check. If i do not receive a reply from you and you cash in my check, I will assume you accept my above mentioned payment terms. If you do NOT accept my payment terms above, please return my enclosed payment check in the self-addressed stamped envelope.

If you have an alternate plan in settling this debt, you can reach me at my Phone number: (###) ###-####.

I am not a chicken to run away from my debts. This is why I am contacting you with this letter. Thank you for your understanding.


(Your Signature)
(Your Printed Name)