How to Get Started

One of the first things you’ll want to do when you’re trying to create a letter to send to your bank or creditors is to gather all the bills you have from a specific company so that you can include certain details in the letter. This is especially helpful if your interest rate for a credit card went up substantially over the last few months, or if you have since changed jobs or acquired other financial obligations that have affected your ability to pay your debt on time. Being able to include facts and figures in your letter is one of the best ways to let creditors know that you do want to pay of your debt, but may not be able to do so right away.

Composing the Letter

You should start the letter in the most respectful tone, and should remind your creditors of times that you have paid your debt consistently if you are only recently starting to have trouble. It is best to contact your debtors via debt letter as early as you can, since this will give you more options and will show your creditors that you are serious about maintaining your financial integrity. Even though it may seem awkward, make sure that you give details about your employment situation, or that you provide information that will help your ‘case’—for instance, if you find that you suddenly have to care for an elderly parent, or are putting a child through college, these things can definitely take a toll on your finances, so be sure to include these facts in the letter. The format or order for the letter should be something like this: greeting (i.e. Dear Sir/Madam, To Whom It May Concern), explanation for the letter, details about your outstanding debt, reminder of satisfactory payment history, and a request that arrangements be made. You should also make sure that you keep a copy of this letter in your financial records, and that you file or document each of the responses that you receive from your creditors.

What happens next?

After you’ve sent your letter and spoken to a representative from the company you are indebted to, you should request a copy of your credit report so that you can find out just how much this debt is affecting your overall credit. During your repayment process, you should keep in touch with your creditors and request one or two additional copies of your report to see if your score is improving.