It is important not to ignore debts. Most companies are amenable to making changes to a payment schedule, especially if the alternative is that you simply default on the debt and they receive nothing.
Get in touch as soon as you realise you can no longer to pay the arranged amount. Be realistic and work out how much you can afford to pay on a regular basis and make an offer in writing to pay this amount as an alternative.
This letter can be used to request a new debt repayment programme from a creditor such as a credit card company.
What should you include in a letter requesting a debt repayment plan?
- Your Name and Address
- Recipient (bank/creditor) Contact Details
- Your Reference (account / customer number)
- Date of statement that details unpaid balance
- Reasons for requesting new debt repayment programme
- Contact details (phone number, email, best time to contact)
Letter requesting a debt repayment plan – sample 1
[City, ST ZIP Code]
Re:Request for Repayment Programme: Your Account Reference
With reference to the unpaid balance as of [insert statement date here] on the above account.
Due to [insert reason here] I am unable to continue with payments in the amount arranged of [amount] and I would be very grateful if I could make a change to my repayment plan on the outstanding balance of this account. I would like to suggest a monthly payment of [insert amount here] per month initially. Please be assured however, that as soon as my financial situation improves, I will contact you again with regard to increasing my monthly payments.
Should you wish to contact me, I am available on [insert telephone number] between [insert preferred contact times here] or send an email to [insert email address] and I will get back to you as quickly as possible.
I thank you for your time and understanding.