Your City, State, Zip
City, State, Zip
Re: (Account Number)
Dear Collection Representative,
I really appreciate your company’s willingness to amicably work out a settlement on my account. Currently, I am badly short of funds due to (Give explanations why have you defaulted on payments, job loss, illness, etc) and unable to pay the amount you have proposed.
So I would like to propose a counter offer.
I would like to offer an amount of $______ to settle the outstanding debt amount of $______ with you.
I also like to request you to include the following conditions as a part of my settlement offer:
- My account will be showing as ‘paid in full’ with no future liability or involvement.
- Any lawsuit filed against me will be immediately dismissed and no future litigation will be made on the said account.
- All the negative information related to the account will be removed from the credit bureaus’ reports.
I have several other delinquent accounts and I will only be able to pay the creditors who will accept a settlement amount I can afford.
I hereby enclose a copy of my financial credentials for your consideration.
If you are in a position to accept my settlement offer, then please sign the debt settlement agreement enclosed herewith and return a copy of the agreement to me.
As soon as I receive the signed agreement, I will send the proposed amount through money order.
P.S: Often, creditors ignore settlement offers from individuals. However, a law firm can turn up something for you with their legal representation and negotiation.