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Sample Debt Negotiation Letter 2:  Ask for a Lower Monthly Payment
Request a Proportional Repayment Plan

Date

Name of contact
Name of company
Address
City, ST  Zip

Re:  Account of [name account is under]; Account No. [insert account number]

Dear _________:

This letter is to follow-up on the telephone conversation we had on [date] wherein I discussed the possibility of lowering my monthly payment so that each of my unsecured creditors receives a fair share of the amount I have available to pay all of my unsecured creditors each month.

After working out a budget with my spouse and cutting back as much as we possibly can on unnecessary expenses, we have determined that we have $__________ each month to pay all of our unsecured creditors after paying our collateralized debt.  A complete list of our unsecured creditors is as follows:

Creditor       Total Amount Due   Average Monthly Payment
X Credit Card$[total amount due]$[avg. monthly payment]
Y Credit Card$[total amount due]$[avg. monthly payment]
Z Credit Card$[total amount due]$[avg. monthly payment]

Unfortunately, the amount we have available each month, $________, is not enough to meet even our current minimum monthly payments.  Therefore, I propose giving each of the unsecured creditors listed above a proportional share of the amount we have available.  I have determined each creditors share as follows:

Creditor        Percentage of Total Debt     Proposed Monthly Payment
X Credit CardTotal debt owed X/Total Debt$[amt available x ___%]
Y Credit CardTotal debt owed Y/Total Debt       $[amt available x ___%]
Z Credit CardTotal debt owed Z/Total Debt$[amt available x ___%]

Please advise me whether or not the plan I have set forth in this letter is agreeable to you.  I want to do everything I can to avoid filing bankruptcy and am hoping I can work out some sort of alternate payment plan with my creditors.  Thank you for your attention to this matter.


Sincerely,


Your name
Address
Telephone

Related article:  Alternate Repayment Plans

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