A credit card debt settlement letter is a statement of circumstances and offer letter in one. In the letter you would outline why you want to agree a settlement, what you can offer now and what you want in exchange.
Credit card delinquencies are increasing, balancing are ballooning and higher bad debt provisions are hitting the books of the major credit card companies. The news is out: the economy is tough out there and consumers are suffering. So are credit card companies, who loaned money but are concerned about getting it back. For this reason, especially if you are behind on your payments, they are actually quite pleased to hear from you. This gives them a new information lifeline and a way to salvage a potential bad debt and write-off situation.
To get ready to write the letter, you need to know a few things about your money. How stable is your job? What sort of income do you have and how regular is it? How do you spend your money and on what? You can figure out a lot of this by looking at past spending habits. Sales receipts, statements and the like. You may want to include a budget or spending plan with your letter, so this preparation is very important.
To have more to offer, you can cut back on some expenses, but do make those cuts realistic. It they are too much too soon, you won’t stick to them, and then have offered too much each month. You’ll run out of money, so be careful in not offering too much if you plan to reduce your spending.
A credit card debt settlement letter is important to be clear and precise. Outline your assets and liabilities, as well as perhaps including a budget or just the main items. If you want interest or other charges reduced, either past charges or future interest included in a repayment program, then include that request. Make a specific offer and clarify that it is the most you can offer.
Related posts:
