This letter tells a creditor that you agree to the terms of a payment plan to payoff a current debt.
1234, Main Street
Boston, MA 02123
04 April, 2005
<Recipient Address Goes Here>
Re: Account No. <account number>
This letter will confirm the payment plan which we have agreed to in order to bring this account current. According to our agreement, I will make <number of payments> payments in the amount of <$amount> each until the account is <brought current/paid in full>. These payments will be due on the <day of the month> of the month.
Thank you for your assistance and understanding in this matter. If you have any questions or if the above does not agree with you understanding of our arrangement, please notify me immediately.
encl: <List of enclosed items goes here>