Below is a sample template letter to your creditors requesting that they accept reduced payments for a specified period of time. Feel free to use this sample letter and customize it to your situation. Below we’ve also offered three other things you could look into to possibly improve your situation.
They’ll help you create a realistic budget, explore all your options, and create a plan to get back on track.
Common ways people are able to reduce their monthly payments, reduce the debt they owe, or both.
Learn how to get some debt relief from your credit cards.
Before using the sample template letter below, make sure you know how to communicate effectively with your creditors.
[Creditor Name]
[1 Downtown Street]
[City, Province Postal Code]
WITHOUT PREJUDICE
ATTENTION: CREDIT DEPARTMENT
RE: ACCOUNT # 1234 567 890 SMITH, JOHN
Due to a [layoff], I am temporarily out of work and am experiencing financial difficulty.
Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt. By that time I hope to be back to work. If my situation improves sooner, I will notify you at that time.
I would appreciate your consideration in this matter as I am not able to meet the regular payment of [$]. I will pay you [$] per month during this emergency.
I request that my account not be placed with a collection agency as I wish to deal with you directly. Over the next 90 days, I ask that you also please consider withholding interest on my debt.
You can be sure that I will resume regular payments on my debt as soon as I am able. I will notify you when my situation improves. Please only contact me in writing at the address below and I will respond to your letters in a timely manner.
[your name]
[complete mailing address]
[phone number]
[account number]
