Sample "Credit Card Debt Settlement Letter"

A Credit Card Debt Settlement Letter is used when you are trying to negotiate the amount of money you will need to pay on an outstanding balance with a collection agency or credit card company. This type of letter is often written when you find you will be unable to repay the full amount of debt you owe and will need to negotiate a lower amount to settle the debt. A Sample Credit Card Debt Settlement Letter is available for download below.

To write a Credit Card Debt Settlement Letter you will want to include the following:

  • The address of the agency managing your credit debt.
  • Opening greeting and a statement explaining why you are requesting the settlement. Include the account number for reference.
  • If the credit card debt has been moved to a collection agency, include the name of the credit card and its number. Also, detail the last time you made a payment on the card.
  • To better help explain your financial situation, you can describe why you fell behind in payments (such as a loss of a job, severe illness, or other extenuating circumstance).
  • Close by stating the amount you are able to pay immediately and provide your contact information.
  • Closing salutation and signature.

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From: ​ R odney Smith
1234 Melrose Circle
Miami, Florida 33154
[Date]
To: ​ A BC Bank
9804 Orange Blvd.
Orlando, Florida 32809
Re: ​ C redit Card Debt Settlement
Account Number: ​ [ Account Number]
To Whom It May Concern,
I’m writing this letter to open negotiation on the credit card debt for the account
number provided above. After a period of financial hardship, I am currently working
to address several unpaid debts I’ve acquired including this one. However, I still have
limited resources and may only be able to pay back what I owe in small installments.
With that in mind, I would like to propose to settle this $900 debt in ten $90 monthly
installments. In return, I request that your company remove any late payments or
charge-offs related to this account on my credit report.
If your company is willing to accept this offer, please prepare a settlement agreement,
sign it and send it to me. Once I receive my signed copy of our agreement, I will pay
the first installment listed above as agreed.
Sincerely,
Rodney Smith
[Claimant’s Signature]
From: ​ R odney Smith
1234 Melrose Circle
Miami, Florida 33154
[Date]
To: ​ A BC Bank
9804 Orange Blvd.
Orlando, Florida 32809
Re: ​ C redit Card Debt Settlement
Account Number: ​ [ Account Number]
To Whom It May Concern,
I’m writing this letter to open negotiation on the credit card debt for the account
number provided above. After a period of financial hardship, I am currently working
to address several unpaid debts I’ve acquired including this one. However, I still have
limited resources and may only be able to pay back what I owe in small installments.
With that in mind, I would like to propose to settle this $900 debt in ten $90 monthly
installments. In return, I request that your company remove any late payments or
charge-offs related to this account on my credit report.
If your company is willing to accept this offer, please prepare a settlement agreement,
sign it and send it to me. Once I receive my signed copy of our agreement, I will pay
the first installment listed above as agreed.
Sincerely,
Rodney Smith
[Claimant’s Signature]