DIY Debt Settlement & Credit Repair Letters

As a consumer, you know your credit situation better than anyone else. Repairing your credit by writing debt settlement letters and credit repair letters is best handled by you. You have the ability to advocate for yourself, come to a settlement that you know you can commit to, and only you know what information on your credit report is incorrect. With a few steps, you can be well on your way to improving your credit, but remember, you may have to write a letter more than once to achieve your desired results.

Instructions

Debt Settlement Letters

1

Take some time to review your financial situation. Figure out the amount of money you can devote to settling the debt. Decide on an amount that you are certain you can pay.

2

Write a letter to the creditor. Write that you are attempting to settle your debt but are unable to pay the full amount. List your settlement offer to include the amount you will pay and the date you will pay it. Give the creditor the reason you are unable to pay in full.

3

End the letter by asking the creditor to respond, on letterhead, agreeing to the terms of the settlement and agreeing to consider the account settled. Specify the date you'd like to hear back. Mail the letter.

4

If the agreement is approved, send the payment upon receipt of the settlement agreement. Pay with a money order or cashier's check. If you do not get a settlement agreement back, send another letter. Debt settlement often takes several attempts to come to an agreement.

Credit Repair Letters

5

Pull copies of your credit report from annualcreditreport.com (see Resources). This site allows you to order a copy from each credit bureau one time per year. The credit reports from this site are free.

6

Review each report carefully and look for any inaccurate information. Federal law gives you the right to dispute any item on your credit report that you believe is inaccurate (see Resources). This could be incorrect dates, balances, payment amounts, late payments, account status or any other information showing on your report.

7

Write a letter to each credit bureau that shows what you believe to be inaccurate information on the credit report. Include your name, date of birth, address and Social Security number. Create a list of each item you have a question about. End the letter by asking the credit bureau to investigate the items and to update, correct or delete each item.

8

Wait for a reply from the credit bureau. Read the letter sent back to you and make note of all the corrections, updates or deletions of your disputed items.