Sample Letter for an Unsolicited Debt Settlement offer

If you are not sure about how to counter your creditor’s debt settlement offer, here is a sample of a Debt Settlement Offer Letter in Response to Creditor’s Proposal:




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:

  1. My account will be showing as ‘paid in full’ with no future liability or involvement.
  2. Any lawsuit filed against me will be immediately dismissed and no future litigation will be made on the said account.
  3. 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.


Your Signature
Your Name

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.

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  • The debt settlement program typically lasts between 6 months to 4 years time.
  • At least 30% of the debt amount per creditor needs to be accumulated in the trust account for OVLG to give the creditor any settlement offer.
  • Not all creditors or debt collectors will accept a reduction in the balance, interest rate, or fees a customer owes such creditor or debt collector.
  • Pending completion of the represented debt-relief services, the customer's creditors or debt collectors may pursue collection efforts, including initiation of lawsuits.
  • That the use of the debt-relief service will likely adversely affect the consumer's creditworthiness, may result in consumers being sued by their creditors, and may increase the amount owed to creditors as a result of the accrual of additional fees and interest.
  • Savings a customer realizes from use of a debt-relief service may be taxable income.

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