Debt Settlement Letter

Our Debt Settlement Letter template:

  • Proposes ‘full and final’ settlement
  • Drafted by a UK expert for reliability
  • Once accepted, it is legally binding
  • Cost-effective legal piece of mind
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How Does It Work?

  • 1. Download
  • 2. Edit
  • 3. Print
  • 4. Sign

This template for a full and final settlement letter is to be used in the case of a disputed debt where as the debtor you dispute that the full amount of the debt is claimed but will make an offer. If the offer is accepted by the creditor then the debt is considered to be settled in full.

If you are settling an alternative legal dispute, rather than a debt recovery matter, then we recommend using these alternative templates:

  • For simple legal disputes this settlement letter for legal disputes; or
  • For more complex legal disagreements we recommend using a full settlement agreement template.

With full and final settlements of any type, it is critical that you get acceptance in writing, so you can prove there was an agreement and what its terms were in case something goes wrong later.

This letter template makes provision for this and provides a specified amount of time within which the offer of settlement must be accepted.

Using our Debt Settlement Letter template

By sending this letter you will be making a formal  offer to settle the debt by paying the amount that you propose. For this reason, and as mentioned above, you must get acceptance in writing in case you need to prove it in the future.

Using our letter template is simple. You can view a sample of the settlement letter by clicking the ‘preview’ button. Once purchased the template can be downloaded in Microsoft Word format and then easily edited by you. Once finished you can then print it on your business’s headed notepaper.

It can then be sent to the creditor who is pursuing you for payment of the debt that they claim is overdue.

If you are a business owner then you may be interested in our other debt recovery letter templates for managing good credit control.

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