FREE PAYMENT PLAN LETTER TEMPLATE
A Payment Plan Letter is generally used to start the process of making regular weekly or monthly contributions towards a debt until the debtor's obligation is partially or completely discharged.
In most cases, you must first provide evidence of financial inability to pay the debt in one payment in order to request an installment payment agreement.
Once a payment plan is agreed upon, a number of obligations on the debtor including additional administrative charges may be imposed.
Below you'll find a couple of sample letters to request a written installment payment agreement on a past due or delinquent account. Don't forget to make the necessary changes to fit your personal situation.
These Payment Plan Letter Templates are intended to start the negotiation with your creditor.
RE: Payment Plan for Account No. (Account #)
Dear (Ms/Mr. Smith:)
I am writing this letter to inform you about my intention of repaying my debt on the above-referenced (past due/delinquent) account.
I'd like to discuss the possibility of working out a payment plan that involves payments of no more than (400 Dollars) per month until I am able to make my full payments in a timely manner again.
Please feel free to contact me, so we can work out a way to bring this account current which would benefit both of us. At this time, I would appreciate if you could refrain from placing any negative or derogatory reports on my credit rating.
I can be reached at (Your Daytime Phone #).
RE: Payment Plan Request
Dear Ms/Mr. _______________________:
The purpose of this letter is to explore the possibility of working out a payment plan concerning my account # ____________.
This is a difficult time and my finances have been hit by a number of factors beyond my control. I ask that you accept a monthly payment of ______________ dollars for the next ______ months until I can get back on my feet and afford to make the full payments again and bring my account current or paid off.
I would consider any alternative debt-repayment plan from you that could pay off my obligation in an affordable manner.
As you can confirm by this letter, I am committed to solve this problem and I would appreciate if you could refrain from placing any negative or derogatory reports on my credit rating at this time.
Please give me a call at _______________ so we can discuss this further and find a mutually acceptable solution that would be beneficial for both of us.