A lump sum debt settlement letter will give us a better chance of obtaining a larger discount; a well written and well formatted letter will go a long way. There are many examples of Lump Sum Debt Settlement Letters on the internet; I will explain what this letter should look like.

Before we reach the stage of sending a settlement letter we have had many discussions with our original creditor or collector and have a feel for what we think they will accept. As I said before a lump sum letter carries more weight than a letter proposing to pay in installments. A letter offering to settle unsecured credit card debt should be formatted in the following fashion:

- The current date. – Your complete name as it appears on the credit card. – Your current address. – The name of the company or agency whom we are sending letter to. – Address of company or agency we are mailing letter to. – Original account number we are sending letter about. – Body of letter. It should look something like this:

XYZ creditor or collection agency,

In an effort to save all of us a great deal of time and expense I´m offering to settle this account for $x,xxx.xx in one lump sum payment due on 7-15-2010.

If you accept my offer, please send written confirmation to my PO Box address. Once I receive your written confirmation, I will make payment to your organization by phone. However, please understand that I will not make any payments until receiving written confirmation that you accept my offer.