Chicago Illinois Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount
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How to fill out Sample Letter For Request To Creditor For Temporary Reduction Of Loan Payment Amount?
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FAQ
I respectfully request that you forgive my alleged debt, as my condition precludes any employment, and my current and future income does not support any debt repayment. Please respond to my request in writing to the address below at your earliest convenience. Thank you in advance for your understanding of my situation.
Tips for Writing a Hardship Letter Keep it original.Be honest.Keep it concise.Don't cast blame or shirk responsibility.Don't use jargon or fancy words.Keep your objectives in mind.Provide the creditor an action plan.Talk to a Financial Coach.
Dear Creditor: Due to a layoff, I am temporarily out of work and am experiencing financial difficulty. Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt.
I respectfully request that you forgive my alleged debt, as my condition precludes any employment, and my current and future income does not support any debt repayment. Please respond to my request in writing to the address below at your earliest convenience. Thank you in advance for your understanding of my situation.
Ways to negotiate Lower your interest rate. Arranging for a reduced interest rate is one of the most common requests consumers make to credit card issuers.Create a repayment plan.Look into debt forgiveness.Consider loan consolidation.Offer a one-time payment.
According to the American Fair Credit Council, the average settlement amount is 48% of the balance owed. So yes, if you owed a dollar, you'd get out of debt for fifty cents.
Get ready to negotiate. Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you're dealing with a debt collector or the original creditor.
When writing a debt settlement letter, it's important to be explicit and detailed. Treat the letter as a contract between you and your creditor. Include your personal information and account number for easy identification. You'll need to outline the amount you can pay and what you expect in return.
I am willing to pay this debt in full / $XXX as settlement for this debt in return for your agreement to remove all information regarding this debt from the credit reporting agencies within ten calendar days of payment.
Typical debt settlement offers range from 10% to 50% of what you owe. The longer you allow debt to go unpaid, the greater your risk of being sued. Creditors are under no obligation to reduce your debt, even if you are working with a reputable debt settlement company.
