Debt Payment Agreement letter is a letter where the debtor writes to the creditor stating the reasons for not being able to repay the debt. The reason could be anything, for instance, the debtor could be financially unstable in the present situation or he might need to extend the debt payment deadline as he does not have enough money to pay within such a short duration. So while writing the letter make sure that you clearly specify the reason for not being able to pay the debt. The letter must be written in a positive tone informing the creditor that you cannot afford to pay the amount at present, but you are trying your best to accumulate the required amount and a little more time would help.
In this kind of situation, the debtor can also come down to a settlement by negotiating the amount that is to be paid. Make sure that the negotiable amount complies with both the parties else the creditor might not agree to the agreement letter. In debt payment agreement letter, make sure that at the very beginning the debtor must have a written copy of all the payment details that are to be made so as to avoid any kind of controversy in future.
Debt Payment Agreement Letter Writing Tips
- The letter must be written in a formal way since it deals with financial matters.
- The letter must be written in a polite and courteous manner as it is a negotiation letter and rudeness never helps anyone. There must be a cordial relation between the debtor and the creditor.
- The letter must contain all the proper and accurate details. It would be good if the letter has all the necessary financial documents attached to it.
- Also, mention the mode of payment through which the debt is to be paid.
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
From,
36D, M G Road
ABC technologies Ltd,
Bandra East, Mumbai.
Date: 4 September, 2016
To,
302, J C Road,
Burdwan Compound,
Lalpur, Ranchi,
Jharkhand.
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,
John Kindo
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,
Ruth Mathews