Debt can be a very harsh part of life. Through life, people incur debt through college loans, bank loans or shopping sprees or an emergency hospital bill that was tacked onto the credit card. For a lot of people, the credit card is where most of their debt comes from. Sometimes this debt can be overwhelming and even cause you to think about bankruptcy, but before this becomes an issue, you should think about getting debt relief from a debt settlement. If you want to settle your debts, however, you will need to write a debt negotiation letter.
A debt negotiation letter is generally used in order to try to achieve a debt settlement. Debt settlement involves making an agreement with your creditor to settle debt for less than the full amount owed on that debt. For example, you may owe $1000 and debt settlement would involve paying $500 to the credit card company, usually in a lump sum. The credit card company would consider the $500 payment in full and the remaining balance would be forgiven.
To write a debt negotiation letter, include:
The credit card company may accept your debt settlement offer in your negotiation letter or may make a counter-offer. Typically, you need to be late on your payments already in order for them to be willing to negotiate with you or to accept the terms of your letter. This can hurt your credit, but it may ultimately help you to get back into a better financial situation in the long run if you are able to settle. Whatever you do though, make sure you get the agreement in writing. (See also how does credit card consolidation hurt your credit).
When debt has given you the feeling as though you'll never obtain free ground again, then you should contact a local debt settlement attorney and talk to him about what you can do Your lawyer may be able to help talk to your creditors or to write you debt negotiation letter for you so that the creditors approve it and you are able to settle your debt for less than the full total that you had owed.