When it comes to the debt negotiation and debt settlement, you are faced with one of two options and they both require extra work. Some of us choose to take care of this messy business ourselves and negotiate with our creditors on a personal basis. Then there is the easier choice - hiring a debt consolidation company to straighten everything out and settle that burdensome debt.

If you’re one of those who choose to negotiate your own debt, the first thing you want to do is learn how to write a debt negotiation letter. Convincing creditors to settle at a lower amount of debt than you owe is more difficult than you might think. However done the right way, it can be accomplished.

Before you start sending out letters, carefully go over all of the following pros and cons of self debt negotiation. If any of it seems like it may be a little too much, don't hesitate to contact a lawyer or a debt settlement company. They will be more than willing to help you with any questions you may have. Here are my best pieces of advice on how to write a legally binding debt negotiation letter:

• Understand the terms and conditions of your debt. This includes all of the fees, surcharges, taxes, and interest rates that apply.
• Put together some numbers of the total amount you owe. Make sure to include all fees and taxes. Knowing a real number of what you owe and how much you actually helps a great deal with understanding of what you can ask for with your creditors. Most ask for about three quarters of the balance, not the full amount. Have at least that much. If you offer to pay too little or pay in low increments, most creditors will not take you and your letter seriously.
• Get your settlement request in writing. If it is at all possible, hire a lawyer or debt negotiation counselor to check it over for any inconsistencies or unnecessary items.
• The first request needs to be relatively low but also reasonable. If a creditor denies this first request, you are now free to raise your settlement request up enough without putting yourself in any further financial duress.
• Once, your creditors approve your request, you need to show them you are acting on good faith. This means making all of your payments in full and on time. Get a written confirmation of the receipt of payment. Speak with a debt counselor to see what other options are available if your request is denied.
• Keep a record of all the correspondence you have with your creditors. Promises and agreements. made over the phone are difficult to verify if something falls through the cracks. A paper trail, in this case, is good thing since it provides documentation of all your work. It also helps you to find important information more quickly if a question or problem arises.