[Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date] [Debtor's Name] [Debtor's Address] [City, State, ZIP] Subject: Offer to Settle Your Outstanding Debt Dear [Debtor's Name], I hope this letter finds you well. I am writing to discuss the issue of your outstanding debt and offer you a favorable opportunity to settle it amicably. We understand that life can be unpredictable, and financial difficulties can arise. Our aim is to assist you in addressing your debt in a manageable manner. At [Your Company/Organization's Name], we take pride in maintaining positive relationships with our clients, and we believe that resolving this debt can lead to a fresh start and improved financial stability for both parties involved. It is important to us that we work together to find a solution that suits your circumstances. Our records indicate a debt of $[Debt Amount] relating to [Nature of Debt]. We propose a debt settlement plan that offers some flexibility in payment options to accommodate your specific financial situation. This plan outlines several possibilities, which include: 1. Lump Sum Settlement: You have the option to settle your debt by paying a reduced lump sum amount of $[Settlement Amount]. This one-time payment will absolve your outstanding balance, including any accrued interest. 2. Monthly Installment Plan: We understand that paying a lump sum amount might not be feasible for everyone. In that case, you can choose to pay your debt over a mutually agreed-upon period. We suggest an affordable monthly payment plan to help you gradually repay your debt. Please note that we are open to discussing personalized payment plans tailored to your unique circumstances. Our primary goal is to help you clear your debt without causing further financial strain, so please feel free to propose an alternative arrangement if necessary. To demonstrate our commitment to resolving this matter amicably, upon receipt of the agreed-upon payment, we will promptly update your credit information to reflect your settlement status. This will help improve your creditworthiness and provide you with a fresh financial start. To confirm your agreement to this proposed debt settlement plan, please sign and return the enclosed copy of this letter in the provided self-addressed envelope within [Time Frame]. Alternatively, you can contact us at [Phone Number] or [Email Address] to discuss the details further or propose any modifications required. We value your commitment to resolving this matter and encourage you to take advantage of this opportunity to alleviate your financial burden. By working together, we can assist you in rebuilding your financial stability and ensure a positive resolution. Thank you for your attention to this matter. We look forward to settling your debt in a mutually beneficial manner. Sincerely, [Your Name] [Your Title/Position] [Your Company/Organization's Name] Enclosure: Copy of Debt Settlement Agreement (Please sign and return within [Time Frame])