Do you have so much bills to pay but don't have the money to pay for it? Do you become jumpy every time the phone rings? Are demand letters starting to flood your mailbox?
If all the demands from your creditors are driving you crazy, then you have to act immediately before you lose your sanity, and your car and perhaps even your house. However, your only option out isn't just filing for bankruptcy. If the word bankruptcy leaves a bad taste in your mouth, then you could apply for debt settlement instead.
Question is, how do you apply for debt settlement? The answer is simple. You either call your creditors to settle your debt or write them a letter.
For a more formal approach, you write them a settlement letter and then meet with them in person. Sending settlement letter avoids early confrontation with your creditors. The settlement letter acts a proposal initiated by you to settle your debt.
Through this settlement letter, you become one step ahead of your creditors. In debt settlement letters, you propose to pay your debt for a lesser amount at a shorter period of time.
Because of delay and other matters, there are surcharges added to your debt. You can ask your creditor to remove these additional charges and simply pay what you really owe them.
However, if the debt is still too huge for you to pay, then you can ask them if it's possible to settle for a lesser amount. Most creditors allow this than have you apply for bankruptcy.
A settlement letter is usually made after the creditor makes a demand. If the creditor has not yet demanded for payment, then it means that the debt is probably not yet due. In a settlement letter, you make an offer that is only a fraction of the debt you owe.
You will have to put your contact number and address in the letter. Aside from this, you must also place the time they may reach you so they can inform you of their decision.
Though it takes guts to write a settlement letter, this is better than meeting or talking to your creditors immediately. Also, settlement letters serve as official proof that you really intend to settle your debt.
If your creditor accepts the settlement, they will send you a confirmation letter or contact you through the phone. They will also wish to speak to you personally to negotiate the terms and amount of the settlement.
Debt settlement letters are easy to write. However, if you need a template or sample, you can always find one on the Internet or in books on legal writing.
Your Popup Blocker Must Be Off