Sample Debt Negotiation Letter 2: Ask for a Lower Monthly Payment
Request a Proportional Repayment Plan
Name of contact
Name of company
City, ST Zip
Re: Account of [name account is under]; Account No. [insert account number]
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.