A Payment Plan Letter is generally used to start the process of making regular weekly or monthly contributions towards a debt until the debtor's obligation is partially or completely discharged.
In most cases, you must first provide evidence of financial inability to pay the debt in one payment in order to request an installment payment agreement.
Once a payment plan is agreed upon, a number of obligations on the debtor including additional administrative charges may be imposed.
Below you'll find a couple of sample letters to request a written installment payment agreement on a past due or delinquent account. Don't forget to make the necessary changes to fit your personal situation.
(Company's phone number)
RE: Payment Plan for Account No. (Account #)
Dear (Ms/Mr. Smith:)
I am writing this letter to inform you about my intention of repaying my debt on the above-referenced (past due/delinquent) account.
I'd like to discuss the possibility of working out a payment plan that involves payments of no more than (400 Dollars) per month until I am able to make my full payments in a timely manner again.