When you have decided that you can no longer pay your debts and you are worried about the legal implications of being behind on your bills, you should consider writing a debt settlement letter.
You should write this letter if you have too much debt that you can no longer pay them all and still have enough to survive the whole month.
Let's face it, most of us live paycheck to paycheck and our credit cards sometimes get us through the month.
But, in the end credit cards are not the answer as we are spending money that we have yet to earn.
I learnt this the hard way and am still learning.
Now, to write an effective letter I have the following suggestions for you: 1.
Make sure you understand the terms and conditions of your debt I am referring to the very small print on your agreement letter, take a magnifying glass, go through it and make sure you understand everything including the interest rates.
2.
The sum of all your fears Total everything up, including the taxes and applicable fees.
From here, you will have a clear picture of how much debt you are in.
This will also prepare you for the next step.
3.
Write the letter! Be polite, courteous, frank and realistic.
Tell them why you are in trouble; they might not care, but it will ultimately influence their decision as well.
Offer them an amount that you could actually pay.
This might be 70% or 80% of your total debt, but as the saying goes, "something is always better than nothing.
" 4.
Be clear It is always best to make sure you say everything you need in a simple well articulated letter.
You can get someone to check it for you, or if you know any lawyers or any one who is in the debt settlement department to check it for you before you send it off.
This will definitely work in your favor My last tip for you is to be positive above what you are doing and believe it will work.
If it doesn't then, try again.
But remember once your letter is accepted, make sure you take all the necessary steps to pay the amount you have agreed upon.