example letter to offer settlement

krazyhorse

Hi guys

First of apologies if I'm posting in the wrong place.

I'm in £15k debt but I'm in a position where I could negotiate an form of settlement agreed with each creditor. I've got 5 creditors to settle, all debt adding up to £15k.

My question is, is there any example letters to send to my creditors offering a discounted amount in order to settle and put the debts to bed?

I've looked on the internet but can only find example letters explaining that if you're in a situation where you're unable to sustain your repayments. I'm now looking for the opposite "exit" letter, if that makes sense...

[Deleted User]

If you're not missing payments, then your settlement figure is the amount you owe.

krazyhorse

Deleted_User wrote: »

If you're not missing payments, then your settlement figure is the amount you owe.

I'm aware of that.

YorkshireBoy

You're not missing payments, so at the moment you're their ideal customer...ie significant debt, yet meeting the payments.


Where else are they going to get a guaranteed 18-25% annual return on their investment? And if you do default, at least the revenue generated will have offset the capital loaned somewhat.


All you'll do by telling them you're sat on 8-10K (for example) is make them feel happy that, either a) you can meet your minimum payments for a good while (years!), or b) you'll repay 1/2 the debt and hence lessen the chance of a significant default.


It's win/win for the lender!

meer53

You can't really negotiate by letter. Call them and discuss your situation with them. They'll only call you when they get your letters anyway.

But as zx81 has already advised, unless you're missing payments or have defaulted, they'll be looking for the full balance. If this was possible, everyone would do it ! No-one would ever repay what they owe would they ?

Sabbathdei

A settlement is usually something that the lender offers to you, not the other way around.
Keep up with the repayments on time and they may give you "time off for good behaviour" 6 months or a year from now. I had a debt halved as a settlement but it was offered after about a year.

krazyhorse

meer53 wrote: »

You can't really negotiate by letter. Call them and discuss your situation with them. They'll only call you when they get your letters anyway.

But as zx81 has already advised, unless you're missing payments or have defaulted, they'll be looking for the full balance. If this was possible, everyone would do it ! No-one would ever repay what they owe would they ?

Not everyone negotiates as not everyone thinks it's possible.

Sorry I forgot to mention one MAJOR THING I'm on a DMP. Estimated time of final payment during dmp is 2022.

Therefore my logic is "Mr creditor do you want £X amount now in lump sum, or do you want drip drab payment until 2022?"

I'm not paying interest on this £15k in this DMP. Sorry for leaving forgetting that bit!

krazyhorse

I found what I was looking for, thanks all
http://www.prlog.org/10571336-simple-sample-letter-for-debt-settlement-negotiations.html

forgotmyname

Depends how trashed your credit file it and how much they think they can get from you.

If they think they can get all their money back eventually then why are they going to offer you a discount for paying now? To earn a few % interest if they are lucky?

If you are borderline on paying the full amount then they will accept less.

Be careful when using templates from another country. That one is in $...
charge off's and credit bureau reports?

krazyhorse

forgotmyname wrote: »

Depends how trashed your credit file it and how much they think they can get from you.

If they think they can get all their money back eventually then why are they going to offer you a discount for paying now? To earn a few % interest if they are lucky?

If you are borderline on paying the full amount then they will accept less.

Be careful when using templates from another country. That one is in $...
charge off's and credit bureau reports?

My credit file is shocking....

Yes thanks for heads up, I'll produce a personalised version, I just wanted a letter to see which bases to cover.

And at the end of the day.... By sending that letter I've got nothing to lose. Thanks all

forgotmyname

Except they may think you have more money than your letting on and worth investigating.