Letter to Creditor Asking to Set Up Payment Arrangements

Write this type of letter when you are asking a creditor to set up a payment arrangement for an amount you owe them, when you are unable to pay the full amount owed all at once. Include relevant details, such as your account number and total amount owed. You can also include a proposed payment arrangement, if applicable, such as the amount you can pay per month for a certain number of months until you pay off the full amount.

[Your letterhead, if desired; if not, your return address]

[Date of letter-month, day, and year]

[Recipient's first and last names]
[Company name]
[Street or P.O. box address]
[City, State ZIP code]

Dear [recipient's name]:

I am writing to you regarding my account balance of $185.48 for account number 873829 with Best Electric. Unfortunately, I am unable to pay this full amount by the due date of 4/2/11. I would like to request that you set up a payment arrangement so that I can pay the amount over time. I can pay $46.37 per month for the next 4 months and would like to know whether you would consider an arrangement like this.

Please call me at 444-0101 to let me know whether this arrangement is agreeable and to discuss this further. Thank you for your time and consideration.

Sincerely,

[Signature]

[Sender's first and last names]