Free Debt Settlement Counter Offer Letter Sample

A debt settlement counter offer letter is a written response to a debt collector’s demand for payment. It is used to propose an alternative payment plan that you believe is more manageable for you. 


To write a debt settlement counter offer letter, follow these steps:

Gather information: Get all the details about the debt, including the amount owed, the creditor, and the terms of the original agreement.

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Introduction: Start the letter with a polite introduction and state the purpose of the letter. Mention that you have received a demand for payment from the creditor.

Offer a payment plan: Propose a payment plan that is realistic and manageable for you. Be specific about the amount you are willing to pay each month and the length of time you need to pay off the debt.

Explain your financial situation: If you are unable to pay the full amount owed, provide a brief explanation of your financial situation and why you are unable to pay the full amount.

Negotiate: If the creditor agrees to your payment plan, ask for their agreement in writing. If they do not agree, you may need to negotiate further to reach a mutually acceptable agreement.

Conclusion: Close the letter by thanking the creditor for their time and reiterating your commitment to resolving the debt.

Sign and send: Sign the letter and send it via certified mail to ensure that it is received and to have a record of the correspondence.

Remember to keep the tone of the letter professional and polite, and to be honest about your financial situation. The goal is to come to a mutually acceptable agreement that allows you to pay off your debt and avoid further collection efforts.

Here is a template for a debt settlement counter offer letter:

Debt Settlement Counter Offer Letter Sample

[Your Name]
[Address]
[City, State ZIP Code]
[Date]

[Creditor’s Name]
[Address]
[City, State ZIP Code]

Dear [Creditor’s Name],

I am writing this letter in response to the demand for payment that I received from your office on [date of demand letter]. I understand that I owe a debt in the amount of [amount owed] and I am committed to resolving this matter in a fair and mutually acceptable manner.

I would like to propose a payment plan that I believe is more manageable for my current financial situation. I am willing to make monthly payments of [dollar amount] for [number of months]. This plan would allow me to pay off the debt in full within [length of time].

I understand that my financial situation may not be ideal, but I assure you that I am making every effort to improve it. [If applicable, include a brief explanation of your financial situation and why you are unable to pay the full amount owed].

I would appreciate it if you could agree to this payment plan in writing. If this proposal is acceptable, I am confident that we can resolve this matter quickly and efficiently.

Thank you for your time and consideration. I look forward to hearing from you soon.

Sincerely,

[Your Signature]
[Your Printed Name]

Frequently Asked Questions (FAQs)

Q. What is a debt settlement counter offer letter?

Answer: A debt settlement counter offer letter is a written response to a debt collector’s demand for payment. It is used to propose an alternative payment plan that you believe is more manageable for you. 

The goal is to come to a mutually acceptable agreement that allows you to pay off your debt and avoid further collection efforts.

Q. What information should be included in a debt settlement counter offer letter?

Answer: A debt settlement counter offer letter should include the following information:

  • Your name and address
  • The name and address of the creditor
  • The amount of the debt
  • The terms of the original agreement
  • A proposal for a new payment plan, including the amount you are willing to pay each month and the length of time you need to pay off the debt
  • An explanation of your financial situation, if applicable
  • A request for the creditor’s agreement in writing
  • A polite and professional closing statement

Q. How do I write a debt settlement counter offer letter?

Answer: To write a debt settlement counter offer letter, follow these steps:

  • Gather information about the debt, including the amount owed, the creditor, and the terms of the original agreement
  • Start the letter with a polite introduction and state the purpose of the letter
  • Propose a payment plan that is realistic and manageable for you
  • Explain your financial situation, if applicable
  • Negotiate with the creditor if they do not agree to your payment plan
  • Close the letter by thanking the creditor for their time and reiterating your commitment to resolving the debt
  • Sign the letter and send it via certified mail to ensure that it is received and to have a record of the correspondence

Q. What is the tone of a debt settlement counter offer letter?

Answer: The tone of a debt settlement counter offer letter should be professional and polite. The goal is to reach a mutually acceptable agreement with the creditor, so it is important to maintain a positive and cooperative attitude throughout the letter.

Q. How do I send a debt settlement counter offer letter?

Answer: A debt settlement counter offer letter should be sent via certified mail to ensure that it is received and to have a record of the correspondence. Before sending the letter, make sure to sign it and double-check for any errors or typos.