Sample Letter to Creditors
Use this example below as a guide when writing to or talking
with creditors. Replace the blanks with your own information.
__________________________________________
(Creditor/Company name)
__________________________________________
(Company Address)
__________________________________________
(City, State, Zip)
Attention: Account Representative
Date: __________________________
Name(s) on account: ______________________________
Account number: _________________________________
Date loan/account opened: _________________________
Total amount due: ________________________________
Monthly payment amount: __________________________
This letter is to let you know that I’m currently having some financial
difficulties. I’m not able to pay the complete monthly payment on my
account because _____________________________________________.
(List your personal reason here – job loss, illness, etc.)
Looking at my financial situation, I have set up a budget for my basic living
expenses and have come up with a debt repayment plan based on my
reduced income. I’m contacting all of my creditors to explain my situation
and to ask for a reduced payment until my situation improves.
I would like to offer a reduced payment of $_______________ per month.
This is the most that I can pay regularly at this time. You can expect this
amount as soon as possible until the debt is totally repaid.
I hope you find this repayment amount acceptable. I look forward to your
letter of acknowledgement. Thank you.
Sincerely,
______________________________________________
(Sign your name)
______________________________________________
(Your address)
______________________________________________
(City, State, Zip)
Tips to negotiate
with creditors
Not all creditors will accept
payment plans, but they’ll
be more likely to work with
you if you have been a
good customer and if you
contact them before they
contact you. Before you
contact each creditor, make
sure you’ll be able to pay
the monthly amount in your
agreement. If you fail to
follow the new plan, your
creditor will be less likely to
work with you again.
Here are some options you
could request from your
creditor:
Reduce your monthly
payment amount
Reduce or drop charges
for late payments
Refinance the loan at a
lower interest rate
Pay interest only on the
loan until you can
resume making monthly
payments
Request permission to
sell the item and use the
cash to repay – or
partially repay – the
debt.
