Share & Collaborate PDF Debt Settlement Agreement Templates For Free

To that end, make sure it contains the following information: The original creditor and/or debt collector's company name. Your full name. Your account number. The amount of the debt you owe. The settlement amount that was agreed upon.

You may cancel the account at any time, and the escrow company must refund all of your money minus any fees the settlement company legally earned. Over your head in debt? Struggling to pay your bills? Beware of services that claim they can eliminate or ?settle? your debts.

A debt settlement letter is, in effect, a written legal contract. It's important to make direct, explicit, and detailed statements. Include your personal contact information, full name, mailing address, and account number. Specify the amount that you can pay, as well as what you expect from the creditor in return.

Key Takeaways Typical debt settlement offers range from 10% to 50% of the amount you owe.

The Debt Settlement Arrangement applies to the agreed settlement of unsecured debts, for example, personal loans, overdrafts, credit card or credit union loans. The arrangement usually applies over a period of 5 years. The limit of 5 years can increase to 6 years in some situations.

Writing the Settlement Offer Letter Include your personal contact information, full name, mailing address, and account number. Specify the amount that you can pay, as well as what you expect from the creditor in return. A good starting point for negotiation could be offering around 30% of the amount that you owe.

These are the steps to follow: Work out what you can offer the people you owe. Send your offer to them in writing. Ask them to confirm they accept your offer in writing. Keep any letters your creditors send you about the settlement offer. Negotiate with your creditors if you need to.

Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. You should also include all the key information your creditor will need to locate your account on their system, which includes: Your full name used on the account. Your full address.

Most companies charge a fee of 15% to 25% of the amount you owe. For example, if you owe $10,000, and the debt settlement company charges a fee of 25%, you'll pay $2,500 once the settlement is complete (in addition to paying the settled amount to your creditor).