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Payment Agreement Letter

You owe the debt and want to make payments but just can’t afford the amount the collector is demanding. Get help settling that debt for less than you owe AND get help making that collector stop contacting you. Simply click the banner below for a FREE NO OBLIGATION consultation, your debt may be able to be settled for less than you owe and the debt collector may just be liable to you for statutory damages of up to $1,000, plus any actual damages suffered, plus attorney fees!

Payment Agreement Letter

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 write your own debt payment agreement letter.

Feel free to copy and paste the letter below into your word processor.

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Free Sample 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 disputing this debt and my current financial situation prohibits me from paying the amount you’re demanding. I am able to make payments on this account every {insert date of month} to your company in the amount of $ _________.

I would appreciate a letter from you (please do not call me at any number) confirming your acceptance of my payment terms. However, if I do not hear from you, I will consider your cashing or depositing 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 envelope.

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 understanding.




Your Printed Name

Send the letter above using these dispute debt collection mailing instructions.

To dispute an invalid debt use this disputing debt sample letter

confidential informationThere may be instances where discussing your situation over a public forum could potentially compromise your interests. On these occasions we will contact you directly via email in order to answer your inquiry in a confidential manner.


  1. I have tried to make payments arrangements with a collection agency and they refuse to accept. I have tried to explain that I live on a very tight budget and will increase the amount I pay as other bills get paid off. I finally told them that I would send them a $25 check each month and was responded to with, “Keep your $25 because we will just send it back to you.”

    What else am I able to do to in order to try and get this paid? I do not have a lot of money and have just barely paid off one judgment and still paying on 2 others. I am depending on my church and children for groceries and have nothing else to offer them.

  2. OK just keep sending them what you have if they take you to court then explain to the judge what you can send tell the judge that you can only sendwhat you have.good luck

    • I did that but the judge explained that since I do owe the money then I would either have a judgement against me or settle for what payment arrangement I was offered. Apparently they have the right to refuse payment with no consequences.

  3. I tried to make a 50. Payment and they sent it back telling me they want 150. At a time and due by the 12th of every month.. I can’t do that I said 100. A month and I sent a 50. Money order and they sent it back .I am lost I don’t know what I can do ??? Help

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