How to Make a Reduced Settlement Agreement for Credit Card Debt

Making a reduced settlement agreement for credit card debt can help save you thousands and eliminate your debt quicker. Creditors aren't required to accept your request to forgive your outstanding debt and settle for less. But crafting a convincing and professional letter may work to your advantage, wherein your creditor may negotiate.

Instructions

1

Write a settlement letter to start the negotiating process. Creditors accept debt settlement letters via postal mail. Write your name as it appears on the account, date of your request and your account number.

2

State why you're writing the letter. Keep your letter brief. Provide a short summary of your financial troubles (unemployed, divorce, considering bankruptcy, illness that prevents working). Explain that you're unable to satisfy your debt in full due to hardship.

3

Express your desire to settle the credit card debt for less than what you owe (include a dollar amount in your letter). In return, ask the creditor to accept your settlement as full repayment, wherein they will not sell the debt to a collection agency or take legal action to collect the balance.

4

Request an acknowledgement to get the settlement in writing. Inform the credit card company that you will not send your last payment until you receive a signed letter stating that the company accepts the terms of your proposal.