Debt Settlement Offer Letter Template

[Date] [Your Name] [Address] [City, State ZIP] [Creditor/Collector Name] [Address] Re: Settlement Offer - Account Number [XXXXXXXXX] Dear Collections Department: I am writing regarding the above account, which has an alleged balance of $[FULL BALANCE]. I am experiencing financial hardship and am unable to pay the full amount owed. I am prepared to offer $[SETTLEMENT AMOUNT] as a lump-sum settlement of this account in full. This represents [X]% of the alleged balance and is the maximum I am able to pay given my current financial circumstances. If you accept this offer, I request written confirmation on your company letterhead stating: 1. The settlement amount of $[SETTLEMENT AMOUNT] constitutes full and final settlement of this account 2. Upon receipt of payment, no further collection activity will be pursued on this account 3. You will report this account to all credit bureaus as "settled" or "paid" with a $0 balance within 30 days of payment 4. You will not sell or transfer any remaining alleged balance to any third party Please respond in writing. I will arrange payment by [cashier's check / money order] within 7 business days of receiving your written confirmation. This offer is contingent on receiving written confirmation. Please do not contact me by phone regarding this offer. Sincerely, [Your Signature] [Your Name] [Phone Number]