Settlement offer | Sample letter

Use this letter to help you negotiate a full and final settlement offer with a creditor. This is a type of offer where you ask the creditor to accept part of the amount you owe and write off the rest. You can find information about how to use this letter in our guide Full and final settlement offers.

You can choose to send a letter in your own name or in joint names. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget.

Fill in your contact details, account number and any extra information you want to include in the grey shaded areas.
Today’s date will be added automatically.
Sign each letter and enclose a copy of your budget if needed.

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Letter in joint names

You can choose to send a letter in your own name or in joint names. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget.

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4th October 2024 [today’s date]*

Dear Sir/Madam

Without prejudice

Account No:

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I am getting advice from National Debtline on dealing with my financial situation and choosing the right debt solution for me.

I am writing about the money which you are claiming on the above account.

I can confirm that I am unable to pay the money which I owe in full.

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However, I can raise £

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and I want to offer this as full and final settlement of the account. I am making this offer on the clear understanding that, if you accept it, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability.

Based on my circumstances, and because these circumstances are very unlikely to improve in the future, I feel a full and final settlement is the best way to resolve the outstanding debt.

I enclose a copy of my budget sheet which gives details of my financial circumstances. I also enclose

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If you accept this offer, please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed.

I can pay the amount I have offered within

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of receiving your written agreement of this offer.

Please give me details of how I can pay.

I look forward to hearing from you.

(Please note, all further correspondence should be addressed to me. National Debtline are a self-help agency and are not acting as my representative).

Yours faithfully

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Full and final settlement offer (sole name)

Full and final settlement offer (sole name)

Letter in joint names