How Do You Write a Letter to Negotiate with a Creditor?

writing a letter

Negotiating with creditors is often an effective way to reduce debt. This bankruptcy alternative allows debtors to get to an agreement with creditors that will benefit both parties. In most cases, creditors agree to reduce the debt amount owed if the debtor is willing and able to pay a reduced amount in a lump sum. However, negotiating with creditors is a challenging process, and one minor mistake can affect the outcome of your negotiation. To guide you through this process, our New York debt relief attorneys provide you with tips on how to write a negotiation letter for your creditor.

How to Write a Debt Settlement Negotiation Letter

If you want to negotiate with a creditor to reduce your debt, you must write a letter explaining how you wish to settle your debt and how much you are offering to pay. Your letter should also include the date by when they should expect to receive your payment.

Your negotiation letter should be formal and should clearly state your intentions as well as your expectations from the creditor. For example, your letter should clearly state that you wish to have your debt reduced by a specific percentage if you pay a specific amount in a lump sum or specific payment amounts by a certain date.

You will also need to include information about your account so they can track down your information and contact you with a response. You should provide the following information:

  • Your full name used on the account

  • Your full address

  • Your phone number

  • Any account numbers or reference numbers that are linked to your account

*If the creditor accepts your offer, you need to make sure that you get it in writing before making any payments.

Don’t Handle Debt Negotiations Alone

Although writing a letter to your creditors might seem like an easy enough solution to overwhelming debt, it must be handled correctly to achieve your desired outcome. For such reasons, we don’t recommend handling debt negotiations on your own. Contact our team at Jacovetti Law, P.C. to get the guidance you need to make sure your debt negotiation benefits you.

Contact our experienced New York debt relief attorneys today at (516) 217-4488 to schedule a consultation!

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