Debt Payment Agreement Letter

Those who can’t pay their debts on time might create an agreement letter to explain their situation to their creditors. There are a variety of possible explanations for this, such as the debtor’s current financial instability or a lack of funds preventing him from making timely payments on the loan.

If you’re unable to pay your obligation, be sure to include that information in your letter. The letter must be written in a positive tone, notifying the creditor that you cannot afford to pay the amount at this time but that you are working hard to acquire the necessary funds, and a little more time would be helpful.

Debtors in this position can negotiate the amount of money they owe. If the negotiable amount does not meet the requirements of both parties, the creditor may refuse to sign the agreement letter.

As part of a debt payment arrangement letter, it is essential to provide a written copy of all payment information to prevent future disputes.

Debt Payment Agreement Letter Writing Tips

• Considering that it’s an official correspondence, it should be written in formal fonts.
• A negotiation letter necessitates that the letter is prepared respectfully and politely. The relationship between the debtor and the creditor must be friendly.
• The letter must include all of the necessary information in an error-free manner. The letter should consist of all essential financial paperwork for the letter to be valid.
• Don’t forget to provide the payment method for the debt as well.

Debt Payment Agreement Letter Template:

Use our free Debt Payment Agreement Letter to help you get started.

From,

__________

__________

__________

Date: ________ (date of writing the letter)

To,

__________

__________

__________

Subject: Debt Payment Agreement Letter

Dear _____________ (mention the name),

This is to inform you that I received a _____ (phone call or letter) from your company stating that the balance of the debt _____ (mention the debt number) is _______ (mention the amount) $. I would request you to kindly extend the deadline for completing the debt payment because ________________ (mention the reason for not being able to pay the debt).

I would be very grateful if you kindly accept my agreement letter and send me a confirmation letter as a proof of the acceptance of this letter. The first payment of amount _____ $ has been enclosed along with this letter. However at a later stage if my financial stability increases then I would contact you at the soonest.

Thank you.

With regard,

Name and Signature

Sample Letter

The following is a sample of a Debt Payment Agreement Letter.

From

Jaspreet 

Hardy Road 

Golden Church 

Delhi. 

March 22, 2022. 

To,

Rock Peter Road 

Red Cross Temple 

Delhi.  



Subject: Debt Payment Agreement Letter

Dear Mr Smith,

This is to inform you that I received a letter from your company stating that the balance of the debt #IFS5623 is 1000 $. I would request you to kindly extend the deadline for completing the debt payment as I am not in a position to pay the amount immediately. My present financial situation is not so stable to complete the debt payment.

I would be very grateful if you kindly accept my agreement letter and send me a confirmation letter as a proof of the acceptance of this letter. The first payment of amount 100 $ has been enclosed along with this letter. However at a later stage if my financial stability increases then I would contact you at the soonest.

Thank you.

With regard,
Your Name

Email Format

The following is the Email format that should be followed while writing a Debt Payment Agreement Letter.

To: name@email.com

From: name@email.com

SUBJECT: Debt Payment Agreement Letter

Dear Mr Sloan,

This is to inform you that I received a phone call from your company stating that the balance of the debt #IFS5261 is 1000 $. I would like to request you to kindly extend the deadline for completing the debt payment because my present financial situation prohibits me to complete the payment.

I would be very grateful if you kindly accept my agreement letter and send me a confirmation letter as a proof of the acceptance of this letter. The first payment of amount 50 $ has been enclosed along with this letter. However at a later stage if my financial stability increases then I would contact you at the soonest.

Thank you.

Yours Sincerely,
Your Name

Also See : Apology Letter for Not Joining Company