Debt Payment Agreement Letter (with Collector)

Use this letter when you owe the debt and want to make payments but can’t afford the amount the collector is demanding.

When your financial situation prohibits you from meeting the payment demands of debt collectors, consider offering them a payment agreement that meets your needs, not theirs. Use the letter below to compose your own debt payment agreement letter.

You are welcome to copy and paste any of the free sample letters displayed throughout this site. If you’d like an electronic copy of any letter, submit the FREE Request Form 

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Free Sample Letter Debt Payment Agreement Letter

Today’s Date

Your Name
Your Address

Attention: {name of collector}
Name of Debt Collection Agency

RE: Your {letter dated} or {phone call on date} reference account #: {place account or reference number here}

Dear Mr. /Ms. {Collector’s Name}

According to my records and your {phone call or letter}, the balance of this debt is $_____.  I am not disputing this debt; however, my current financial situation prohibits me from paying the amount you’re demanding.  I can make payments on this account every {insert date of month} to your company in the amount of $ _________.

I would appreciate a call from you confirming your acceptance of my payment terms.  However, if I do not hear from you, I will consider your cashing or deposit my check as confirmation that you accept my payment terms.  If you do not accept my terms, then I expect the enclosed payment to be returned to me immediately in the enclosed self-addressed stamped envelop.

As a show of good faith, I’ve enclosed my first payment in the amount of $________.  If my financial situation improves enough for me to increase my payment amount, I will contact you immediately. 

Thank you for your cooperation. If there are questions regarding this matter, you can reach me at (insert phone number and area code).




Your Printed Name