What is the most economical way to overcome your debt issues? It is through writing a debt settlement proposal letter on your own.
Here is the step by step approach for your kind reference.
Step 1: First thing first, include all the basic information, such as your name, address, contact number, account number, debt amount and the interest rate.
Address the letter to the officer from credit department.
Step 2: Write a brief outline of your current financial situation.
You can tell your creditors frankly about the hardships you are facing.
It is not necessary to write a very long explanation but just highlight that you are trying your best to eliminate your debt.
Step 3: Propose the amount of settlement you can afford to pay.
You can also include the details of how and when the payment can be made.
You are advised to offer to your creditors to pay off your debt in one lump sum because in normal circumstances, creditors do not allow the debtors to pay by installment.
Step 4: State in your letter that you want the remaining debt balance to be forgiven and request a letter of agreement from your creditors after they have given their consent.
Last but not the least; don't expect that you will definitely be able to settle your debt through your first letter.
If your initial offer is rejected, draft another counter offer letter and restate the details why you are unable to pay for higher amount.
You need to be patient because you may have to write a few letters in total before your proposed settlement is agreed by your creditors.