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Below is an example Full and Final Settlement Letter Template you can use to make an offer of repayment to a creditor to settle the balance you owe.

You would normally make a full and final settlement offer if you have come into some money, and would like to get rid of some of your debts.

Typically you would normally offer to pay back a percentage of the total amount outstanding and the rest of the balance is then written off.

You save money because you didn’t have to pay back the debt in full and your creditor recoups most of what is owed in a shorter space of time.

The Example Full and Final Settlement Letter Template

Mr A Debtor
123 Debt Avenue
Debtville
D38 1BT

8^th March 2013

Debt Collector
123 Debt Collector Road
Defaultville
D3 1FL

Without Prejudice

Reference: 1BIGDEBT

Dear Sir or Madam,

I write with regards to the above account and the balance currently outstanding.

I am unable to pay off the debt in full. However I am in a position to make an ex-gratia payment in full and final settlement of the above account. I can offer YOUR AMOUNT HERE as a full and final settlement of this debt.

This offer is being made on the basis that, if accepted, neither you or any associate company will take any further action or enforce to pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that you make an entry on my credit file to mark the debt as satisfied in full.

I can make payment within YOUR TIMEFRAME HERE of receiving your written acceptance and agreement of this offer.

I look forward to hearing from you soon.

Yours Faithfully

Mr Debt Man

Please feel free to use the above Full and Final Settlement Letter Template, changing it to your own information and needs.

Download the Full and Final Settlement Example Letter

Click Here to Download the Example Offer of Repayment Letter.