Can a Debt Settlement Letter Help You With Debt Negotiation?

Before you spend any time looking for a sample credit card debt settlement letter, know that they may not be necessary for you to get debt relief. You can achieve your goals, get your debts reduced and significantly reduce your stress and anxiety levels with debt negotiation. But you may not need outdated methods to achieve those goals.

Many people still believe that they can send a debt settlement letter to their creditors and get a timely response to their offer that agrees to all their demands. This is not the case anymore. The major credit card banks like Bank of America, Chase, Citibank, and Discover card receives millions of pieces of mail every month. You cannot expect them to read your letter and provide a quick response if at all to your offer.

If you do happen to receive a response, it will probably say that they do not offer debt negotiation programs or that you have to call in to their call center to discuss your account.

A letter through the mail cannot “negotiate” for you. A negotiation is something that is dynamic and can change in a few minutes. The only way to do this is over the phone. In order for do-it-yourself debt negotiation to work, you have to get comfortable with calling up your creditors and negotiating a reduction on your balances. It works the same just as if you were buying a used car.

It is actually easier to do over the phone because you cannot see the other person and they cannot see you so that makes it easier to play hardball and negotiate for a larger reduction than if you had to see them face-to-face.

Once you fall 120 to 150 days behind on your credit card payments you may start to receive debt settlement offers from your creditors which give you a starting point on the negotiations. Since they have shown they are willing to negotiate, you can call them up and see if they will accept a smaller lump-sum payment that you actually have. You may not have the amount they are asking for in the letter.

Then once you have reached an agreement on an offer that you can afford, ask your credit card bank to fax or mail you the details of the settlement with the payment amounts and due dates. This is the only “debt settlement letter” that you must have before you make your first payment on your settlement. You can negotiate without using any other debt settlement letters.