Struggling with debt is a stressful situation in itself. Once collectors get involved, the stress can become overwhelming and even unbearable. Fortunately, there are some great debt relief options available. Debt settlement is one of them. Debt settlement is a great option because it gives a debtor who is experiencing financial hardship the opportunity to pay off their creditors less than the balance originally owed. Undeniably, it is one of the best options to address debt and save money. Debt settlement is a negotiation process where a debt settlement company negotiates with creditors on behalf of the debtor. Borrowers who consider this option can rest assured that they will never have to deal with angry creditors or collectors on their own again. With a debt settlement firm, a special savings account will be set up on your behalf. You will make affordable payments into this account monthly. Once a decent amount of savings has accumulated, the dent settlement firm will contact your creditors or collectors and begin negotiations on your behalf. To settle your debt, you initially need a debt settlement letter. This is a document that explains your financial situation to your creditor. Moreover, it outlines the amount of money you propose to pay.
What Should A Debt Settlement Letter Include?
Sending a debt settlement letter has potential benefits. Sending a settlement letter can be beneficial if you are in financial hardship. Debt settlement is a great alternative to bankruptcy. You can depend on a debt settlement firm to write a debt settlement letter on your behalf. This letter will contain the following:
Personal Information:
A debt settlement proposal is just like a contract. It will include your full name and account number to help creditors recognize your case. Your creditor is only able to share your personal information with third parties with your permission.
Your Current Financial Situation:
Your debt settlement letter must include your explanation of your financial hardship, and why you are having trouble paying your debts. In addition, it should include any significant life incidents like a job loss, environmental disaster, or medical illness. It can also include any other financial obligations, such as the obligations of any dependents.
What Should You Expect in Return?
A debt settlement letter will include a detailed description of what is expected in return from your creditors. For instance, it can be requested that your creditor remove your missed payment history or a request for documentation of your account appearing fully paid. Moreover, it should also include a request for a written confirmation of acceptance of the proposal to your creditor. It is important to remember that money is sent only after getting this confirmation, as it acts as liability coverage.
Debt Settlement Offer:
A debt settlement firm will negotiate an offer amount with your creditors in order to settle for less than what you owe. Debt settlement companies recommend starting the negotiation at 30% of the debt you owe. Your creditors will propose a higher amount than your initial proposal. Therefore, it is important to start your debt settlement offer with a lower amount than you want to pay.
Conclusion:
Creating a strong debt settlement letter is the first and most important step towards resolving your debt issue and getting peace of mind. At the time, you need help from the best debt relief company. Contact us today if you are considering the option of debt settlement.