Payment Plan Proposal Letter to Creditor

The primary purpose of writing this letter is to propose a method to pay off the debt in installments if you are not financially strong enough to pay it immediately. This letter can also be used to get protection against the legal actions that a creditor can take against you to get the payment immediately.

Since you are writing this letter to propose the installment plan that you want to be followed to clear the payment between you and the creditor. It is important that you write a letter for proposal in an efficient way so that the creditor can see your confidence and can believe that you will pay him on time.

Essential elements:

The main elements of this proposal letter are:

  1. The details of the loan that you have taken from the creditor
  2. The particulars of the fixed and regular installment plan that you are going to follow each month to pay off the debt.

Benefits of writing a proposal letter for payment plan:

  1. This proposal letter is very efficient and can be very useful for if want to set your financial ability for paying the Debt off.
  2. It is also beneficial for those people who want to avoid the legal action which the creditor is going to take against them.

Always keep that in mind that you should write this letter to the creditor only in the case you are sure about the fact that you owe the money of the creditor.

It should also be ensured that you don’t have a sufficient number of resources to pay the entire amount of money at once because of which you have to choose the installment plan.

The details about the installment plan should be mentioned in the letter. You can decide and mention the period after which you will pay the installments. Since this is a professional letter, it is important to maintain a professional tone.

The format of the letter should be the same as another professional letter. End the letter with a friendly tone and thank you statement.

The following letters will help you solve this problem. You can write a professional letter for yourself using any of the templates given below. Hope it helps!

Sample -1

Dear [NAME],

I am [NAME], the [POSITION] from the [COMPANY]. I am writing this to you on behalf of the company’s accounts and sales management. This letter is written to propose and settle upon a payment plan to return the outstanding amount in installments. In this proposal, we have tried to keep the interests of both parties in mind and none has been sidelined for monetary benefits.

It would not be feasible for us to return the whole amount in one go so we propose paying back over a period of [some] months. [our company] has already made the payment of [X] percent amount whereas a [X] percent amount is still in arrears. We propose dividing the remaining amount in [x] parts and paying it back over a period of [x] months. In case of late payment on our part, we commit to paying you interest of [x] percent.

Please respond by writing to us at [EMAIL] or call at [PHONE] to confirm the settlement plan. In case of any disagreement with the plan, please suggest the changes you would like to make in the proposal for the settlement of the outstanding amount. Thank you.

Regards.

Payment Plan Proposal Letter to Creditor

Size: 19 KB Word .doc File 2003 & later

Sample -2

Payment plan proposal letter

Size: 21 KB Word .doc File 2003 & later

Sample -3

Payment plan proposal letter to creditor

Size: 18 KB Word .doc File 2003 & later