Reduced Payment Request

Use this letter to notify a creditor that you’re only able to make a reduced payment in a time of financial difficulty.

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  3. Reduced Payment Request - Sample Template Letter to Creditor

Reduced Payment Request Sample Letter To Your Creditors – Template

Below is a sample template letter to your creditors requesting that they accept reduced payments for a specified period of time. Feel free to use this sample letter and customize it to your situation. Below we’ve also offered three other things you could look into to possibly improve your situation.

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The Sample Template Letter

Before using the sample template letter below, make sure you know how to communicate effectively with your creditors.

[Today’s Date]

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




RE: ACCOUNT # 1234 567 890 SMITH, JOHN


Dear [Creditor]:

Due to a [layoff], I am temporarily out of work and am experiencing financial difficulty.

Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt. By that time I hope to be back to work. If my situation improves sooner, I will notify you at that time.

I would appreciate your consideration in this matter as I am not able to meet the regular payment of [$]. I will pay you [$] per month during this emergency.

I request that my account not be placed with a collection agency as I wish to deal with you directly. Over the next 90 days, I ask that you also please consider withholding interest on my debt.

You can be sure that I will resume regular payments on my debt as soon as I am able. I will notify you when my situation improves. Please only contact me in writing at the address below and I will respond to your letters in a timely manner.



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

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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.

Rosie, a Credit Counselling Society client
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Absolutely great organization!

They were very approachable, realistic, and kind in a trying time. Even though it’s been a while now since I’ve finished things up with them, their service is still stellar when I need help with getting copies of old documentation or questions about my report. I can’t recommend them enough. Such a humane, dignified way to handle the stress of financial issues.


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If you're struggling and are wondering how to move forward, give us a call. We're happy to answer your questions and help with any financial advice you need. It's possible that all you need at the present time is the right information or a plan for how to move forward once your situation improves. Give us a call if you have any questions. Speaking with us is always free, confidential and non-judgmental.

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