Getting out of debt is hard if you don’t have the money, we all know that and when it comes down to dealing with debt collectors, it can be awfully hard.  When trying to deal with the collection agencies, you have to act like you mean business and don’t let them walk all over you.  Writing a letter alone can prevent you from getting your wages garnished or having you show up in court.

There are usually a handful of letters you can write.  These will include responding to a debt collector when they send you something in the mail and by writing to them directly.  Whether you want to negotiate your bill or ask them simple questions, a letter is still one of the best ways to communicate since they will take it more seriously than an e-mail or phone call.  It also gives you a piece of evidence as well if something happens in the near future.

How to write the letter

Writing a letter to a debt collection agency is really no different that when you write to your Grandma or any other relative.  You’ll want to have your letter look something along the lines of this –

[collection agency name]
[address]

[your name]
[account number / reference, etc]
[your address]

To whom it may concern:

Here, you’ll write how you’re having difficulties paying your bills but you’re willing to pay them.  Tell them what you’re willing to pay and how much of the bill you’ll pay so that they can report “paid in full” to the reporting agencies.

Ask them to review it and have them return it to you.  When you write this letter, make sure you write something that you can live up to.  Never lie and tell them you can pay $5,000 in 30 days if you can’t because this is going to get your into more trouble.

At the end of the letter, sign your name along with a section for the creditor to sign off as well telling you they agree that you pay X amount in X amount of days, etc.

There are some great sources online as well if you want a full example on how to write a debt letter.  Here are some links that you can hopefully use for your own personal use:

Try these 2 sites above as they will give you a few examples.  Take your time when writing these out and always send it via certified mail and make a copy for yourself.  You’ll always want as much evidence as possible when it comes down to writing a debt letter.