Letter of Agreement to settle debts

Your Company's Name
Address

Your Home Address:

Date:

Dear Sir/Madam

RE: your account number

In response to the recent correspondence, I am now ready with the complete assessment of my current financial circumstances.

I enclose a copy of my statement of the monetary sources, which provides details of my/household monthly income, along with the outgoing debt repayment amount. I also enclose a list of my other creditors, along with their repayment proposals, which have been calculated on the basis of my financial position. I am experiencing difficulties because my debts are growing beyond limits with high interest rates. I find it very difficult to meet ends at the end of the month. My moderate income does not permit me to pay my debts regularly after meeting the household expenses. I hope that you will take this into consideration when considering my proposals.

The final amount we mutually agreed upon is $.......... I also request you to take into consideration the fact that we also agreed that all my interest rates, late fees or any reference to them are to be eliminated from my credit report. Kindly refrain yourself from taking any further action against me as payments will be maintained as decided in the agreement.

These payments represent a proportional distribution of my available income and expenses and this I hope should provide the base for a solution to my debt problems. I will review my position on a regular basis and inform you of any changes in my circumstances, be it for the better or for the worst.
I hope that you will agree to my proposals and help me during this time of financial crisis. I look forward to receiving written confirmation from you as soon as possible.

Thanking you in anticipation.

Yours faithfully,

Your signature
Your name