Below is an example repayment letter template you can use to make an offer of repayment to a creditor. Alternatively, at the end of the post is a link to download the letter in Word Format.
When you initially contact a creditor to make an offer of repayment, you can either phone them and spend some time talking through it or you can send them a letter.
I prefer the letter approach as it is easier and means I have a record of what I have said. This is the same letter I use when I want to send an offer of repayment to a debt collection agency.
The Example Offer of Repayment Letter Template
Mr A Debtor
123 Debt Avenue
22nd September 2012
123 Debt Collector Road
Dear Sir or Madam,
I write with regards to account number 1BIGDEBT. I am currently experiencing financial difficulties and I am unable to make the repayments required by my current credit commitments.
I have enclosed a copy of my Income and Expenditure form. This includes both my expenses and a list of other creditors who I am required to pay. I have calculated all the payments to my creditors using the pro rata method.
I ask that you will accept my repayment offer of £10 per month. My first payment will be made on the 1st October and by the 1st of the month thereafter.
If any charges or interest are being added on to the account, I ask that these charges are frozen in order to allow my repayments to start reducing the balance I owe.
I would be grateful if you would confirm the details of how I can make payment to you.
I look forward to hearing from you soon.
Mr A Debtor
Please feel free to use the above repayment letter template, changing it to your own information. Don’t forget to include an Income and Expenditure form as well as it will make your life easier.
An example of an Income and Expenditure form can be found on this blog. Whilst you don’t have to send this, doing so means the creditor or debt collection agency has a better overview of your finances.
Download the Example Letter
Click Here to Download the Example Offer of Repayment Letter.