Sample Letter

Date

Your Address

Account #___________

Name of Creditor
Address
City, State, Zip Code

Attention: Delinquent Account Representative
Subject: Your Name; Your Account Number

The purpose of this letter is to inform you that I am having some budgeting and debt problems. I am having trouble making my minimum monthly payment as a result of (a recent job loss or seasonal unemployment, etc.). I hope we will be able to agree upon an acceptable debt repayment plan.

I have taken a careful look at my financial situation. I have set up a realistic minimum budget for my living expenses and have developed a debt repayment program. I am hoping you will accept a reduced payment. Amounts will be increased as soon as possible until the debt is totally repaid.

I owe (l2 creditors over $7500). My asset value is less than ($3,000). My only assets are (a car with a Blue Book value of $l,000, some home furnishings worth $l,500 and my clothing). My monthly take-home pay is ($708). I have ($242) left over after basic living expenses for debt repayment. I would like you to accept a partial payment of ($50) per month to repay my obligation. You may expect the first payment on (July l, 19  ).

I hope you find this plan acceptable. I look forward to your letter of acknowledgment. Thank you.

Sincerely,

Your Name