During the debt settlement negotiation process, a letter requesting a lump sum settlement may be one of the best ways to successfully land a settlement on your credit card debt.
Most credit card companies are more willing to accept a lump sum because they know that they’ll get paid at least some of the principle money back, as opposed to a payment plan, that can be easily dropped out of.
A good negotiated settlement would be anywhere between 30% and 60% of what you owe. Don’t get too greedy, or they may say no.
So here is sample of how to craft a letter that simply requests a settlement (for less than full balance.
Sample Lump Sum Debt Settlement Offer Letter
Acct Number: Account Number
Credit Card Company Name
City, State and ZIP Code
Re: Requesting Payoff of my Credit Account
Dear Sir or Madam:
This letter serves a my official offer to pay my past due credit card balance of CREDIT CARD BALANCE with your company, list the name of the card company, account number Account Number. As you are aware, I am unable to pay the full balance, however I am able, at this point in time, to gather an amount that I believe will be an agreeable payoff amount.
I would like to request that if I pay the amount of LUMP SUM AMOUNT, my account will be considered paid in full.
If this is agreed upon, I would also request the following:
- My account be closed and no further interest or penalty charges would be applied.
- A written confirmation of your agreement to this proposal be sent to my address on file with you.
After agreeing to this proposal and receipt of your written confirmation, I will pay the amount of LUMP SUM AMOUNT via certified check within 10 days of receiving your letter.
After you receive and post the payment, I request the following:
- An official letter indicating that my account is closed and my balance is $0.
- The account status as reported to the Credit Reporting Agencies be “CLOSED BY REQUEST OF CARDHOLDER” or “PAID IN FULL”
Thank you for your prompt attention to this matter. I you would like to discuss this further, please contact me by mail at the address below or by phone at telephone number.
I look forward to resolving this matter.
Your Typed Name
City, State and ZIP Code
This is a pretty simple and straight to the point letter that covers all your bases including what is reported about your account on your credit report. Keep in mind that the important part of this letter is that you are asking for a lump sum settlement. If they agree to that part you’ve pretty much met the objective.
If they don’t want to report it to the credit bureaus the way you request or if they want to handle the payment terms differently, don’t worry about it too much since they at least agreed to a lower payoff amount.