I, Payee Name (“Payee”), borrowed from Loan Date 1,000 $US of Promisor Name (“Promisor”). By signing this agreement, Payee and Promisor confirm that Payee Promisor will repay with the following payment schedule. This agreement is intended for the negotiation and compromise of a debt under the following conditions: It is to inform you that I have received a phone call or letter from your company which stipulates that the balance of the debts is – (mention of the debt number) – (mention of the amount). I would like to ask you to extend the deadline for the payment of the debt because – (mention the reason why they are not able to pay the debt). Here are some tips for writing the debt cancellation letter: These documents should not be long or complicated. However, it is important that they contain some basic elements so that the terms can be understood and interpreted by anyone who reads them. Sometimes referred to as a “salary change” or “staggered payment,” a payment letter defines a transaction between at least two parties. Such agreements are common between companies that agree to exchange money for goods or services. These documents can also be used by insurance companies that ask customers to accept certain payment terms.
In addition, the agreement can determine the type of penalty if the money is not repaid as agreed. Interest rates are not always part of these agreements. If no compensation is offered, the creditor must hire a collection office or even go to court, which he wants to avoid doing. This contract is valid until (date) and is considered null and void if the debtor has not made the payment within the due period and the status of the account is immediately considered due. The letter must be displayed on a page. That`s all the creditor can read. If the letter contains the debtor`s difficulties in stopping paying his debts, the difficulties must be briefly stated. This means the exact amount of unsecured debt, the amount of income and the amount the debtor is willing to pay.