If you are in financial trouble and feel that settlement of some of your debts is the only option, you can hire a lawyer to help you or you can attempt to work with your creditors yourself. If you decide to do it your self you’ll need to contact each company where you owe money and try to work out an alternative balance. It is best to do this in writing making sure you keep a copy of every letter you send for your own records.
Here is a sample letter that you could send to a credit card company asking for a reduction in your payment. Remember this is only a sample of what you might want to send. It should be customized for your exact situation and for the settlement you are trying to get.
Credit Corporation
1234 Any Lane #99
Anyplace, CA, 58492RE: Account 91817167
Dear Sir/Madam:
I have had some financial set backs that have made it difficult to meet my obligations to make my monthly payments to you. I am now recovering financially and am trying to contact each company where I owe money and work out a payment arrangement that will allow me to avoid bankruptcy.
Last fall I was lost my job from Citco Incorporated. While looking for a job I did roofing work and suffered an accident that put me in the hospital for 6 weeks. I now have a job with another company.
I would like to purpose that you close my account waiving all interest and late charges and accept a new balance of $1200 which I will pay at a rate of $100 per month over the next year. If this is acceptable to you, please have your representatives contact me to work out the remaining details.
Sincerely,
Bob Bobington
Obviously the credit company is under no obligation to accept your offer, but if you are making a genuine effort to pay them as much as possible, this type of approach to debt settlement has a good chance of working out. Just make sure that whatever you commit to pay, you will be able to pay.
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