Dealing With Creditors

Learn how to communicate with your creditors effectively.

Sample Letters to Communicate With Creditors

When you’re not able to keep up to date with your payments on your unsecured debts, it’s important to provide your creditors with an update about your circumstances.

Depending on your situation, one of these 3 sample letters may help you communicate effectively with your creditors. As you get ready to use one of these letters, either with a mailed letter or by email, it’s important that you know how to use the letter properly and what you need to include with your letter when you send it to your creditors.

Young serious man holding papers, reading them attentively, sitting indoors. Anxious woman sitting next to him looking at documents.

Legislation Varies by Province When Communicating in Writing

The reason for sending your creditors a letter is to advise them about your situation. In some provinces, you can also ask collectors to only communicate with you in writing. It won’t stop them from charging you interest. In many circumstances, however, they will try to find ways to help you.

By not proceeding with escalated collection activity or legal action, you’re able to focus on improving or resolving your circumstances. This will help you sleep better and not worry about what your creditors may or may not do.

Please Note: In some provinces, if you have not made payments on a debt in some time and you contact a creditor in writing, either on your own or with one of the sample letters below, that may constitute “acknowledging the debt” and restart the statute of limitation in the same way making a payment does.

Always use the term “alleged debt” when speaking with collectors or creditors. Sometimes, they may try to get you to verbally acknowledge the debt. This too could restart the statute of limitation.

The statute of limitation that determines how long a creditor has to collect on a debt that’s no longer acknowledged by the debtor varies by province and ranges from 2 to 6 years.

Credit reporting agencies also report debts on your credit report based on the date of last activity on the debt. After 6 years of no activity, a debt is usually no longer reported by the credit reporting agencies.

Sample Letters to Creditors

If you’re looking to communicate with your creditors about your debt, it’s a good idea to understand what you can and cannot say. Below are some sample letters used in common situations when communicating with creditors. Read through the warning in the yellow section above as there are some things that if mentioned in writing could trigger acceptance of the debt or extension of the time period they’re allowed to legally pursue you for payment.

reduced payment icon

Reduced Payment

For when you can only afford to make partial payments.
agenda with timer on it icon

Can’t Make Payments

For when you can’t make any payments for a short period of time.
letter with pen icon

Forgiveness of Debt

For when you can’t pay now or in the foreseeable future.

Having trouble with your debts?

We can help. Give us a call at 1-888-527-8999 or send us a quick note to call you back and we’ll be in touch to answer any questions you may have about debt. We’ll help you find a solution that works best for you.

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Sample Letters

Use this checklist and get ready to communicate effectively with your creditors.

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