If you are having financial hardships and can't meet up your monthly debt obligations, use the sample letter to request your creditor for approving a reduced payment plan and help you manage your debts.
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Letter to Request a reduced payment plan from a Creditor

If you are struggling to make your monthly payments on your debts, you can request your creditor for a reduced payment plan to help you meet your monthly debt obligations. Below is an example of a sample letter to request your creditor for payment reduction:

Date

Your Name
Your Address
City, State Zip

Collection Agency
Collection Agency Address
City, State Zip

Re: Acct # XXXX-XXXX-XXXX-XXXX

To Whom It May Concern:

I regret to inform you that I am unable to continue with my current payment plan due to some unfortunate circumstances that I am currently facing. But I want to continue my payments and become debt free.

After reviewing my present financial condition and my monthly budget, I find it a real necessity to request an alternative payment plan. I’m also requesting all other creditors for a reduced payment plan until my situation improves.

I’d like to offer a reduced monthly payment of $___________ instead of the regular monthly payment of $ ____________ that I’ve been making each month.

I will resume my regular monthly payments as soon as I recover from this financial crisis and keep you updated about any change in my financial situation.

I hope you will understand my situation and acknowledge my request.

Sincerely,

Your Signature
Your Name


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  • The debt settlement program typically lasts between 6 months to 4 years time.
  • At least 30% of the debt amount per creditor needs to be accumulated in the trust account for OVLG to give the creditor any settlement offer.
  • Not all creditors or debt collectors will accept a reduction in the balance, interest rate, or fees a customer owes such creditor or debt collector.
  • Pending completion of the represented debt-relief services, the customer's creditors or debt collectors may pursue collection efforts, including initiation of lawsuits.
  • That the use of the debt-relief service will likely adversely affect the consumer's creditworthiness, may result in consumers being sued by their creditors, and may increase the amount owed to creditors as a result of the accrual of additional fees and interest.
  • Savings a customer realizes from use of a debt-relief service may be taxable income.
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