Letter to arrange payment plan

A letter to arrange payment plan for unpaid debt or overdue bills is quite common and sometimes this is a nice bargaining chip so that people you owe money to won’t send the debts off to annoying bill collectors. The last people you want with debts in your name are debt collectors that call you every day, so it’s best that you send out a letter to arrange payment plan with the company you owe the money to and take care of it the proper way.


Starting to Write


State when the fees took place, what the fees are for and how much the total is.


Clarify that you don’t currently have the money but are more than willing to negotiate a payment plan so that while they still receive their money, all of that money doesn’t come out of your pocket at once.


Leave accurate contact information that the company can get ahold of you by and thank them for their time.

Sample Letters

Sample Letter to arrange payment plan

Dear Mrs. Richeston,

I would like to work with you to arrange a payment plan for the following debt: $2,125 on my car payments which have been due since March 9. While I do fully intend to pay off the debt, I currently can’t afford the lump sum all at once and would appreciate some cooperation on this issue.

If I may, I would like to make monthly payments on the 1st of every month for approximately $250 which is more than affordable for me at this current point in time. This means, in 9 weeks total, the full debt will be paid off and you won’t have to send the debt to collections. Please let me know if you can work with me on this debt and if this is something that you can do.

Name: Kathryn Lively

Number: 310-291-3987


Kathryn Lively