Payment Plan Proposal Letter

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 the 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:

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 sufficient amount 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 the professional tone.

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

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 Template -1

Payment plan proposal letter

Format: MS Word | Download

Sample Template -2

Payment plan proposal letter to creditor

Format: MS Word | Download