Things to consider when writing a letter requesting a credit card debt settlement.

• Don’t sound too eager to settle. The older your debt gets the harder is for them to collect it
• Your opening offer should be about 20 percent of the debt amount
• Be professional and polite
• Be confident and persistent
• Make only offers you can afford
• Don't show hesitation or get angry
• Try to negotiate lower interest rates

Credit Card Hardship Letter Sample

Keep in mind that this sample letter is only a guide in order to start the negotiation. Your personal information and the specifics of your situation must be added, changed or deleted.

(Date)
(Credit Card Company's Name)
(Address)
(Phone number)

RE: Hardship Letter

I am writing this letter to inform you of my present financial difficulty and ask for a settlement of sixty to seventy percent of my balance.

Due to a considerable drop in my income in the past (2, 3 months) and the high interest charged, I can no longer (keep up with my credit card payments in the amount of ($) per month, pay the minimum due,…)

Enclosed please find my financial documents and statements proving my hardship at the moment. (include any past due statements, late payments statements, past 2 months of proof of income, repossessions, credit card statements, last 3 months of bank statements,...)

Once I am informed in writing of your decision to accept my offer of ($), the total payment will be mailed to you in 5 business days.

At this time, I am making similar arrangements and negotiations with other creditors in order to avoid filing for personal bankruptcy.

I plead that you carefully consider my proposal and I deeply appreciate any effort you can make to help me in this regard.

If you wish to further discuss this settlement offer, you can contact me at (your daytime phone number with area code).

Thank you very much for your time and consideration.

Sincerely,

(Credit Card Holder's Name)
(Address)
(Phone number)
(Account number)

When negotiating on the phone:

Don’t talk with the average customer service representative. Contact the company's hardship department or someone like a manager who can actually authorize a credit card settlement or a lower percentage rate.

If your credit card account is already in default, it's too late to negotiate lower interest rate. You are better off negotiating an offer to settle.

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