Free Debt Settlement Agreement Letter [Sample]

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Learn how to write a debt settlement agreement letter. Use our sample debt settlement agreement letter as a template for your agreement letter.

Debt Settlement Agreement Letter Sample

[Name of Debtor]
[Address of Debtor]
[City, State, Zip Code]


[Name of Creditor]
[Address of Creditor]
[City, State, Zip Code]

RE: Settlement agreement of debt

Dear [Name of Creditor]:

This is a formal acknowledgement of our phone conversation on [DATE] in relation to settling my debt. 

We agreed that my outstanding debt is [AMOUNT], and that you will accept the sum of [LOWER AMOUNT]. 

We agreed that this will constitute payment in full and will discharge all due bills. Once the payment is made, no further steps will be taken on your part to collect the alleged debt. 

I will make the payment in full with a cashier’s check within five days after this agreement is signed.

I understand that if the payment is not made according to the agreed time, this agreement is null and void and the full amount I owe will be due. 

Once I have made the agreed payment, you will erase any negative information on my credit report and not place any negative information on my credit report in the future pertaining to this debt. 

Please sign the included copy of this debt settlement agreement letter and return it to me. 

Thank you for your kind consideration in this matter. If you have any questions, I can be reached at Phone Number or Email Address.


[Signature of Debtor]
[Printed Name of Debtor]

[Signature of Creditor]
[Printed Name of Creditor]