How to write a Counter Offer Settlement Letter

A debt settlement counter offer is what you negotiate to pay your creditors/collection agencies in response to their offer to payment of the debt in full. If the amount the creditor offers you is too high, you can counter their offer with the maximum amount you feel you can afford. A sample format of a counter offer letter is given below:

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 negotiate with me to settle my debt. This letter is to make a counter offer in response to the amount your customer service representative has asked me to pay in order to repay the debt in full. The amount that I wish to offer you in payment of my debt is $ .

Unfortunately, I do not presently have enough money to pay all my creditors. I can only settle my debts with those creditors who are willing to meet my terms. I have been able to negotiate successfully with several of creditors, and I doubt that I'll have sufficient funds remaining at the end of this month to repay everyone.

When I settle this debt, I'd like to request that you help me remove any negative listings on this account from my credit file. I am willing to offer you more money if you will report my account status as "Paid in full" to the credit bureaus.

If you find these terms agreeable, please sign the attached agreement letter and return a copy to me. Upon receipt of this signed acknowledged agreement, I will send you a money order in the amount stated above.


Your Signature

Your Name