Do Debt Settlement Letters Really Work?

If you can't keep up with your credit card bills, then debt settlement might be the right solution for you.

Many consumers think that they can negotiate their credit card bills using a debt settlement letter. Unfortunately, while this sounds like a good idea, it usually does not work.

Why not?

There are several reasons why debt settlement does not work by sending letters.

Letters can get lost. While the U.S. Postal Service is usually quick and reliable, letters can still get lost. Or they can get delivered, and then get lost in a pile of paperwork on some clerk's desk. Even if you send by registered or certified mail, or use a service like FedEx, there is no guarantee that the letter will be read by the right person.

Letters don't get to the right person. Each credit card company usually has a staff that handles settlements. Even if they allow the process to work through the mail, there is no assurance that your letter will get a response. Especially if your offer is not accepted.

Letters don't have the same impact. While "sob stories" don't usually help, there is no substitute for personal contact. Handling yourself with dignity and class, and explaining your hardship clearly, go a long way to making the negotiation process work for you.

So then, how does the process of debt settlement work?

First, you need to talk with the right person or department. Most customer service people you reach by calling the credit card company's 800# usually are not the right people to talk with.

Second, you need to be prepared to make several contacts. Most settlements are not accepted from the first contact. Or the second contact.

Third, you are working with other people. So by stating your case clearly, and handling the negotiation process politely, will help you get the best deal.

So, while debt settlement letters sound like a good idea, in most cases you will need to pick up the phone (and probably more than once) to get your settlement offer accepted.

Want to learn more about debt settlement? Find out how debt settlement works, learn how to find an honest settlement company.