How to counter a debt settlement offer

A counter offer to debt settlement offer is what you propose to pay your creditors/collection agencies in response to the offer they make for a settlement of your debt. The sample settlement counter offer letter below should be attached to the Debt Settlement Agreement Letter sent to your creditor.

The Letter

Your Name

Your Address

Your Phone #

Creditor's Name
Creditor's Address

Dear Sir/Madam,

Re: Account Number

I appreciate that your company is willing to work with me in settling my debt so that I may pay it off. This letter is to make a counter offer in response to the settlement offer made by your company, which I received on Date .

The amount that I propose to settle the debt in full is $. I would also like to request that you remove any late payments or charge-offs on this account from my credit report.

I have several debt accounts that I am attempting to settle as well. Unfortunately, I have a limited amount of funds. So, I can only pay those creditors who are willing to meet my terms. I have already reached several mutually agreeable settlements with other creditors, and I doubt that I'll have enough funds to pay everyone.

If your company is willing to accept my proposal, please sign the attached letter agreeing to my proposal and return a copy to me. As soon as I receive this signed acknowledged agreement, I shall send you a money order in the amount I've proposed.


Your Signature

Your Name