Also called an Agreement to Compromise Debt or Debt Settlement Agreement Letter

This is a sample letter to send to a creditor, like a credit card company or a collection agency, to request a reduction in the amount you owe them. It can also be used to confirm in writing your verbal agreement to settle your debt for less than full balance.

Here’s a simple letter to send your credit card company after you’ve closed your account over the phone. This isn’t necessary with most credit card companies, but it’s always a good idea to send one to ensure that your credit card account is closed properly and your credit reports are update to reflect the closure.

This debt settlement offer letter from Discover Card saved me 45% off my credit card balance.