No Ability To Make Payments Now

Use this letter to notify a creditor that you have no ability to make payments on debt right now.

No Ability to Make Payments Now Template
Sample Letter to Your Creditors

This is a template letter to your creditors explaining that you can no longer make payments at this time. Before using it, make sure you know how to communicate effectively with your creditors.

Caution: This sample letter doesn’t work for every situation. It’s also important when communicating with creditors to use the term “alleged debt.” Here’s why. Please read this note before using this sample letter.

[Today’s Date]

[Creditor Name]
[1 Downtown Street]
[City, Province Postal Code]




RE: ACCOUNT # 1234 567 890 SMITH, JOHN

Dear [Creditor]:

I am writing to inform you that my current income from [CPP, OAS, Disability Pension, Government Assistance, etc] is not enough for me to be able to make any payments towards my alleged debt at this time.

I respectfully request that you contact me by letter only going forward; please do not contact me by telephone. I will respond to any letters you send to me in a timely manner.

If at anytime I am in a position to resume payments on the alleged debt, I will contact you immediately to make appropriate arrangements.

I thank you for your patience and understanding during this difficult time.

This communication is provided solely for the purposes of notifying you to communicate in writing only and does not constitute an acknowledgement of the alleged debt described above.



[your name]
[complete mailing address]
[phone number]
[account number]

Stop the Collection Calls

Get Help With Your Situation

We’re always happy to answer your questions and provide you with assistance or more information. Get help now and stop the collection calls.

How We Can Help

If you’re struggling to pay your creditors right now, using the sample letter above can be a good idea, but you may actually have more options. Find them by speaking with one of our credit counsellors. You can talk to us in person or over the phone, and we’ll help you in the following ways:

Stop Collection Calls

If you’re being harassed by your creditors, this can be stopped very quickly and easily — for free. Our experienced credit counsellors will help you:

  • Stop the harassing phone calls
  • Develop an overall strategy to manage a short-term financial crisis
  • Outline what you need to do to get the cooperation of your creditors
  • Identify and resolve unreasonable collection practices

We can do all of this and a lot more for anyone with debts in Canada.

Consolidate & Reduce Monthly Payments

One of our experienced credit counsellors can help you review your financial situation and see if there are any consolidation or debt relief options that will fit your goals and budget to get you back on track as quickly as possible. Options may include our Debt Management Program, which combines unsecured debt payments into one affordable monthly payment that fits your budget. Speak with one of our counsellors to see what options you have. They can also help you put together a realistic budget and plan to get you out of debt.

Get Control of Your Finances

The help we provide often results in the following:

  • Reducing or eliminating interest charges from credit cards
  • Repaying your debts with one affordable monthly payment
  • Avoiding bankruptcy
  • Stopping collection calls
  • Getting back on track to achieve your financial goals

No matter how bad your situation is, there’s always hope. If we’re not able to fully help you right now, then one of our counsellors can help you make the most out of your current situation and see what your next steps can be when things start to improve. The key is to educate yourself on all your options so that you can make informed decisions and get back on track as soon as possible.


Information and options available to ease into a “new life” were beyond helpful…

Retiring has lots of challenges and changes both financially and personally. The information and options available to ease into a “new life” were beyond helpful. Thank you just doesn’t seem to be enough


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