Reduced Payment Agreement to Creditors Letter

If you have already spoken to your creditors over the phone and if they have agreed to you making lower payments every month, use this letter to follow up your phone conversation and put it into writing. Click here to get an MS Word format version of this letter. A .doc file will open up and save it to your Desktop. This way you can easily retrieve the file.

Today's Date

Your Name
Your Address
Your Phone #

Creditor's Name
Department
Creditor's Address

Re: (Your Account #)

Dear Mr/Mrs Creditor,

Thank you for taking the time to speak with me today regarding my short term financial hardship and problems in making the full payments due on the above referenced account. I also want to thank you for agreeing to the following payment arrangement on my account:

I will make reduced payments of $____ on or before the ____ of each month for a period of ____ months starting ____(today's date)____ after which I will resume making full payments on my account.

I appreciate your kind understanding regarding this matter and if you have any questions/concerns, please do not hesitate to contact me at ____(your Phone #)____.

Sincerely,

(Your Signature)
(Your Printed Name)