Need debt advice? 0800 043 3329
Open 8am-8pm M to F | Open 9am-3pm Sat

Sample Settlement Letter

The following text could be used in a letter to send to creditors if you wish to work out an offer of payment in full and final settlement.


Creditor name
Address & postcode

Dear Sir or Madam:

RE: Account No __________

I am currently unable to pay the money which I owe in full because __________. However, I have been able to raise some short-term funds and would like to offer you £_____ as an ex-gratia payment in full and final settlement of the account. This offer is made to you on the clear understanding that, if accepted, neither you nor any associate company will then take any action to enforce or pursue this debt any further and I will be released from any liability.

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to this account as being “satisfied” in full.

Payment can be made within _____ of receiving your written agreement of this offer.

I thank you for you cooperation at this time and look forward to your response.

Yours truly,



Have some questions?

We offer an online debt chat service during our operating hours. Just click below to chat with a debt advisor.

Get Debt Advice

By submitting this form I consent to the processing of my data & agree with the Privacy Policy
We will never pass your information to a 3rd party

IVA Information

Find out all about an IVA by reading our extensive information, from what an IVA is to FAQs, Advantages, disadvantages and more...

Click here
IVA Calculator

Fill in our form with your details including household income & expenses and find out what your monthly repayments might be in an IVA.

Click here
Other solutions

Find out what other debt solutions are available in the UK for helping you address your debts. When we assess your situation, we will run through all options.

Click here

" Absolutely brilliant company. Made me feel safe from the start and handled everything professionally and quickly. "

See More