debt forgiveness letter
A Debt Forgiveness Letter is often requested by those who are struggling with large debt balances that have accumulated over the years. It is not an easy task and can be very stressful to begin with. There are many debt relief methods available today, from a debt settlement company to credit counseling to debt settlement. With so many options, how do you know what method is best for your situation? To answer this question we must go into detail about what a debt forgiveness letter should contain. A Debt Forgiveness Letter should be sent to the lender of your unsecured debt along with a financial statement including your income and expenses. Include the facts: when writing a Debt Forgiveness Letter include the following information: your name and address. Your current financial status with the date.
How to write a debt forgiveness letter
The first part of your debt forgiveness letter should include a few sentences describing your situation and what caused it. Highlight any mitigating circumstances you can think of, such as being disabled in the past or medical bills you may have written off. Don’t lie on your letter, no matter how tempting it may be. If the lending company finds out you’ve lied they may end up canceling your line of credit or reporting your lie to your credit card company.
In Part Two of your debt forgiveness letter to explain why you feel your financial situation is temporary. Highlight any other factors that could lead to your hardship and explain what steps you will be taking to rectify your situation. Explain your plans to pay your remaining medical bills and other debts as soon as possible. Explain to the lender your plan and ask for a letter of confirmation that you are enrolled in a program that will prevent a negative reporting to your credit card company.
If you can’t work out a solution with the lender, explain that your hardship letter was not a reflection of your ability to pay but rather an expression of your desire to right the wrongs that have resulted in your inability to pay your bills. Have the lending institution to arrange for a payment plan with a non-profit agency that will help you pay your debt without a bankruptcy. Work out a payment plan with the agency and pay in full or have the agency to distribute the money to your creditors in small amounts. Have your lender send you a letter confirming the arrangement and asking you to return to the agency to arrange future payments.
Once you’ve arranged a payment plan, send your debt forgiveness letter to the debt collector. Include in the letter your settlement agreement and include your phone number so they can contact you for confirmation. Ask that the collector delete your name from their database of creditors. Be sure to ask the debt collector not to contact you by telephone or mail and not to add you to their database of creditors. A collection agency can legally notify a creditor of a debt in either a written letter or through electronic means and you should find out what the guidelines are for reporting this type of activity.