Once you have defaulted on the payments for over 6 months, you can expect your creditor to send you a debt settlement letter.
 It gives the creditor an opportunity to settle debt for less than you owed.
Most of the times, the letters sent directly from your creditor; however, it could come from a debt collection agency working on behalf of your creditor, too.
How to handle Debt Settlement Letter from your creditor? Debt relief programs may be a good thing for some people, but might not be the right option for everyone.
If you have received a debt settlement letter, respond quickly and make a decision that fits your personal financial needs.
You will notice on the letter that you only have a limited time to reply to such offer.
 If the offer is still too high for you, make sure you negotiate the debt with your creditor.
Call them up and make a counter offer that is affordable for your current situation.
Although you may have the chance to settle the debt for as low as 50% owed, it is not always the case.
Expect to see the debt reduction by average 20% to 30%, unless your debt is much older.
The older your debt becomes, the more anxious the creditor will be and the more debt deduction will be granted.
 However, it also means that your credit gets even worse because of the month after month of default on the payments.
If your debt is not that big and are mainly high interest and late payment fees other than purchase payment, you should talk with your creditor to waive all these fees and help you reduce the debt.
Send a Debt Settlement Letter to your creditor To avoid being chased by your creditor or the debt collection agency, you may want to write a debt settlement letter to your creditor even before them sending you their first debt settlement letter.
By sending them the letter, you let them know that you need help to pay down the debt and you are willing to work with them.
 Your creditor may or may not offer the perfect solution, but it's a good start in negotiating your debt and getting you caught up in payments.
In your letter, you should inform your creditor what is happening with your financial situation, what your plan is in terms of paying off the debt.
Make them believe that your hardship is temporary and you are trying your best to pay off debt as soon as you possibly can.
People who avoid debt settlement letter or stay away from contacting their creditors are expected to receive debt collection calls and hunted aggressively by debt collectors and the creditors.
Therefore, it is wise to start negotiating your debt as early as you can.
 It gives the creditor an opportunity to settle debt for less than you owed.
Most of the times, the letters sent directly from your creditor; however, it could come from a debt collection agency working on behalf of your creditor, too.
How to handle Debt Settlement Letter from your creditor? Debt relief programs may be a good thing for some people, but might not be the right option for everyone.
If you have received a debt settlement letter, respond quickly and make a decision that fits your personal financial needs.
You will notice on the letter that you only have a limited time to reply to such offer.
 If the offer is still too high for you, make sure you negotiate the debt with your creditor.
Call them up and make a counter offer that is affordable for your current situation.
Although you may have the chance to settle the debt for as low as 50% owed, it is not always the case.
Expect to see the debt reduction by average 20% to 30%, unless your debt is much older.
The older your debt becomes, the more anxious the creditor will be and the more debt deduction will be granted.
 However, it also means that your credit gets even worse because of the month after month of default on the payments.
If your debt is not that big and are mainly high interest and late payment fees other than purchase payment, you should talk with your creditor to waive all these fees and help you reduce the debt.
Send a Debt Settlement Letter to your creditor To avoid being chased by your creditor or the debt collection agency, you may want to write a debt settlement letter to your creditor even before them sending you their first debt settlement letter.
By sending them the letter, you let them know that you need help to pay down the debt and you are willing to work with them.
 Your creditor may or may not offer the perfect solution, but it's a good start in negotiating your debt and getting you caught up in payments.
In your letter, you should inform your creditor what is happening with your financial situation, what your plan is in terms of paying off the debt.
Make them believe that your hardship is temporary and you are trying your best to pay off debt as soon as you possibly can.
People who avoid debt settlement letter or stay away from contacting their creditors are expected to receive debt collection calls and hunted aggressively by debt collectors and the creditors.
Therefore, it is wise to start negotiating your debt as early as you can.
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