How does debt settlement work?

You offer to pay a lump sum that is less than the total owed in exchange for the creditor forgiving the remaining balance. Creditors often accept 40-60% of the original amount to avoid costly collection efforts.

Will debt settlement hurt my credit score?

Settled accounts may appear as 'settled for less than full amount' on your credit report, which can lower your score temporarily. However, it's generally better than unpaid collections or bankruptcy.

What should I include in a debt settlement letter?

Include your account number, the total amount owed, your settlement offer amount, proposed payment terms, and a request for written confirmation that the settlement will be considered 'paid in full.'

Should I get the settlement agreement in writing?

Absolutely. Never make a payment until you have a written agreement from the creditor confirming the settlement terms. This protects you from future collection attempts on the remaining balance.

Legal & Financial

Settle your debt for less

Propose a clear, professional settlement with the terms in writing. Free first letter, no credit card.

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Select letter type

Propose a settlement to resolve outstanding debt

Your Name

Creditor/Collection Agency

Account Number

Total Amount Owed

Settlement Offer

Proposed Terms

0 characters

Tell me what happened, in your own words(optional)

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Output Language

Select tone

This is not legal or financial advice. AI output can be inaccurate — review it before sending. For serious matters, consult a qualified professional.

Fill in your Debt Settlement Letter details on the left

Your polished letter will appear here in about 30 seconds

Example output

[Date]

Dear [Recipient's Name],

I am writing to you regarding [your specific situation].

[The AI personalises this section using the details you fill in on the left — every letter is unique to your situation.]

[Additional context and supporting details get woven naturally throughout.]

Thank you for your time and consideration.

Sincerely,
[Your Name]

What you'll need

Fill in these details and our AI will craft your debt settlement letter instantly:

Your Name
Creditor/Collection Agency
Account Number
Total Amount Owed
Settlement Offer
Proposed Terms

How it works

1Fill in the details about your debt settlement letter
2Choose your preferred tone: Professional, Diplomatic, Firm
3Click generate and get your professional letter in seconds
4Copy, download as PDF, or regenerate as needed

Frequently asked: Debt Settlement Letter

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[Date] Dear [Recipient's Name], I am writing to you regarding [your specific situation]. [The AI personalises this section using the details you fill in on the left — every letter is unique to your situation.] [Additional context and supporting details get woven naturally throughout.] Thank you for your time and consideration. Sincerely, [Your Name]