Time comes when you might need to talk to your creditors and ask them if they can work out on an alternate payment plan for you. You might also need to reduce your interest rates and debts as well. It is important to convince them and let them understand your problem so that they can take a step.

<Company>
<Address>

Date:

Re: <Your account no>

Dear Sir/ Madam,

I am presently going through some financial difficulties and fear that I will not be able to meet my monthly payments to you. I do not want to declare bankruptcy and want to try and work out an alternate payment plan so that I don’t have to default on this debt.

I would like to suggest a strategy if it is acceptable. If you could close my account, waive the interest payments and accept a new balance of <50% or whatever you propose> of what I currently owe, then I can afford to make a monthly payment of $_____.

(Relate your financial trouble, only as much is required for official purposes)

I am sure you will agree to the situation which has caused this fallout. Please feel free to have one of your representatives call me and work out the final strategy.

If you feel, you can’t adjust the payment plan; I would be forced to default on this account. I intend to pay creditors who can work for me.

Thanks for your cooperation,

Sincerely,
<Your Signature>
<Your name>

While we provide you with sample letters to help you deal with creditors and collection agencies, yet if you need further help, fill out the no-obligation free counseling form and feel free to talk to our financial coach.