Sample Letter: Reduced Payment Request Letter
Use this letter to notify a creditor that you are only able to make a reduced payment during a period of financial difficulty.

Caution: This sample letter may not always be appropriate for all types of situations. It is 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]:

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]

Stop the Collection Calls & Get Help with Your Situation

Remember, we are always happy to answer your questions and provide you with assistance or more information. Get help now and stop the collection calls.

Get Help Now

How We Can Help

If you're struggling to pay your creditors right now, using the sample letter above may be a good idea, but you may actually have more options. You can find out by speaking with one of our Credit Counsellors. You can talk to them in person or over the phone, and they can help you in the following ways:

If you are 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 gain the cooperation of your creditors
  • Identify and resolve unreasonable collection practices

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

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 your budget and 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 a plan to get you out of debt.

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
  • Stop collection calls
  • Getting back on track to achieve your financial goals

No matter how bad your situation is, there is 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.

Client Experience

"This is one organization I would highly recommend to anyone experiencing problems in repaying any debt. The Counsellors treat you with the dignity and respect you deserve and provide helpful advice on how to deal with your creditors."


- Heidi