Can I send all of my Creditors a settlement letter offer?
Date: Fri, 06/05/2009 - 12:10
I have about 7 credit cards that I have had for several years, which have all been closed. They were closed by a debt management program, but I got dropped from that program because i lost my job. I have been late sometimes with making the monthly payments, but for the last couple of months, I TRIED to be on time. (I still don't have a job right now).
I know I brought this all on myself, but I am getting depressed because I feel like I am getting nowhere just paying the minimum payments w/ sky high interest rates and I can't afford to pay more.
Of all 7 cards, my highest balance is about $1800 and my lowest is about $300.
My question is....Can I send each creditor the below letter with an offer to pay off these cards for 30-50% of each balance and see if they accept???
To Whom It May Concern,
According to your records, I owe an outstanding balance of $_ 1000- _, in reference to account number _____________.
I feel I have a moral obligation to pay this debt I owe; however, I do not have enough money to pay you in full. I would like to offer you a settlement amount of $_500-_ to consider this account paid.
Please accept this offer, as it is all I can afford. If you accept this offer; please send me a letter that you are in agreement to the following terms:
1. You accept a one time lump sum payment of $_500-__ to satisfy my debt of $__1000-__ owed to you.
2. You agree to cease collection attempts.
3. You agree to report to the credit bureaus Experian, Trans Union, and Equifax that this debt has been satisfied. Preferably that the debt has been paid in full; however that decision rests on your shoulders.
4. You will send proof of satisfaction to me stating that the debt has been satisfied as soon as my funds have cleared.
When I receive your letter I will immediately send you the agreed amount so I can get this burden behind me. I appreciate your consideration of my offer and thank you for your time.
I know I brought this all on myself, but I am getting depressed because I feel like I am getting nowhere just paying the minimum payments w/ sky high interest rates and I can't afford to pay more.
Of all 7 cards, my highest balance is about $1800 and my lowest is about $300.
My question is....Can I send each creditor the below letter with an offer to pay off these cards for 30-50% of each balance and see if they accept???
To Whom It May Concern,
According to your records, I owe an outstanding balance of $_ 1000- _, in reference to account number _____________.
I feel I have a moral obligation to pay this debt I owe; however, I do not have enough money to pay you in full. I would like to offer you a settlement amount of $_500-_ to consider this account paid.
Please accept this offer, as it is all I can afford. If you accept this offer; please send me a letter that you are in agreement to the following terms:
1. You accept a one time lump sum payment of $_500-__ to satisfy my debt of $__1000-__ owed to you.
2. You agree to cease collection attempts.
3. You agree to report to the credit bureaus Experian, Trans Union, and Equifax that this debt has been satisfied. Preferably that the debt has been paid in full; however that decision rests on your shoulders.
4. You will send proof of satisfaction to me stating that the debt has been satisfied as soon as my funds have cleared.
When I receive your letter I will immediately send you the agreed amount so I can get this burden behind me. I appreciate your consideration of my offer and thank you for your time.
As long as you keep making payments, they are not going to settl
As long as you keep making payments, they are not going to settle. Your debt total does not look bad, if you want to save your credit try debt consolidation. If you are not worried about credit then stop paying and offer to settle after 90 days.
True. Creditors will not entertain a settlement offer unless you
True. Creditors will not entertain a settlement offer unless you have paid nothing for 3 to 6 months. Sorry that your debt management program didn't work out for you, but since they closed your accounts, you were probably on the debt settlement program.
Here is DebtCC's Do-It-Yourself Debt Settlement page which will give you some ideas on how to go about negotiating with your creditors.
