Writing a Letter to Pay Off a Debt (Free Samples)

Template 1: Letter to Pay Off a Debt (Full Payment)

[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]

[Creditor Name]
[Creditor Address]
[City, State ZIP Code]

Dear [Creditor Name],

I am writing to you today to confirm my intention to pay off my outstanding balance in full. I understand that my current balance is [insert amount], and I would like to pay the full amount immediately. I have enclosed a check for the full amount, which should clear within [insert timeframe].

Please confirm receipt of this payment and that my account has been paid in full. If there are any remaining steps that I need to take, please let me know. I want to ensure that my account is closed and that I have fulfilled all of my obligations.

Thank you for your assistance in this matter. I appreciate your time and attention.

Sincerely,
[Your Name]

Template 2: Letter to Pay Off a Debt (Payment Plan)

[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]

[Creditor Name]
[Creditor Address]
[City, State ZIP Code]

Dear [Creditor Name],

I am writing to you today to discuss my outstanding balance with your company. Due to unforeseen circumstances, I am unable to pay the full balance in one lump sum. However, I am committed to paying off my debt in a timely and responsible manner.

I propose a payment plan in which I make monthly payments of [insert amount] until the balance is paid in full. I have included a check for the first month’s payment, which should clear within [insert timeframe]. I will continue to make payments on the same day of each month until the debt is paid off.

Please let me know if this proposal is acceptable to you, or if there are any modifications that you would like to make. I want to ensure that I am meeting my obligations and that my account is up to date.

Thank you for your time and attention to this matter.

Sincerely,
[Your Name]

Template 3: Letter to Pay Off a Debt (Financial Hardship)

[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]

[Creditor Name]
[Creditor Address]
[City, State ZIP Code]

Dear [Creditor Name],

I am writing to you today to discuss my outstanding balance with your company. Unfortunately, I am experiencing a period of financial hardship due to [insert reason]. I am unable to make the full payment on my account at this time.

However, I am committed to paying off my debt as soon as possible. I propose a payment plan in which I make monthly payments of [insert amount] until the balance is paid in full. 

I have included a check for the first month’s payment, which should clear within [insert timeframe]. I will continue to make payments on the same day of each month until the debt is paid off.

I understand that this is not an ideal situation, but I want to be transparent with you and work towards a solution that benefits both of us. 

Please let me know if this proposal is acceptable to you, or if there are any modifications that you would like to make. I want to ensure that I am meeting my obligations and that my account is up to date.

Thank you for your time and consideration.

Sincerely,
[Your Name]