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Sample Letter For Payment Plan Agreement

It is highly recommended that the notary`s agreement be certified and signed, or at least by an impartial third party. This letter, which proposes payment in increments, covers: I, Payee Name (“Payee”), borrowed US$1,000 per Promisor Name (“Promisor”) on the credit date. By signing this agreement, Payee and Promisor confirm that Payee Promisor will repay with the following payment schedule. For payments over $10,000, it is recommended that both parties add a notary confirmation to the contract and sign it in the presence of a notary. 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. A payment agreement describes a payment plan that is tempered to miss a balance that is outstanding over a specified period of time. This is common if an amount is too much to pay for a debtor in a single instalment. Therefore, the creditor agrees to make an agreement that is affordable below the debtor`s financial position. It is customary for payment agreements to require the debtor to pay directly by credit card or ACH (direct bank account payment) on a recurring basis. This letter, which proposes payment in increments, is only an offer and does not constitute a legal agreement. If the creditor accepts your offer in a letter accepting payment in installments, this agreement is a formal legal agreement. After approval of the balance due, the terms of the payment plan should be defined in a simple agreement.

Often, there is no guarantee that is mortgaged with the debtor`s incentive to pay either interest-free payments or an updated overall balance. After the signing of the creditor and the debtor, the contract becomes final. You can apply to the lender to take into account any good credit history you have. This will help ensure the creditor of your ability to meet repayments in a timely manner and give you a stronger position when you offer staggered payments. Payee also agrees to pay a fee of $35 per week for each week during which payment is delayed after the first of the month. This $35 fee can be paid as a $5 per day fee for each day when payment for segments less than seven days is late. Payment agreements can also be concluded between private parties. Friends, family and co-workers can use all of these documents to ensure fair trade when lending or accepting money. Payee agrees to repay Promiseor with a personal cheque of $100 on the first of each month for 10 months starting January 1, 20- The last payment will be made on October 1, 20, on the date of full repayment of the loan.