Requesting a Payment Plan: A Guide to Managing Overwhelming Bills

Request a payment plan if you cannot afford to pay an entire amount due.

Many people deal with unexpected or overwhelming expenses on a regular basis. Sometimes these expenses come in the form of medical bills, taxes and credit or loan payments. When faced with a bill that is too large to handle, many people avoid paying altogether. This strategy will leave you with a lowered credit score, non-stop creditor calls and potential legal or financial penalties. Before you decide not to pay a bill because it is simply not in your budget, consider sending a payment plan request to make larger bills more manageable.

Step 1

Start your letter with a professional heading. While you may write a letter by hand, typing will ensure that your request is easy to read and understand by the recipient. Type your name and address in the upper left-hand corner of your page. Skip a line and type the date. Skip another line and type the letter recipient's name and address.

Step 2

Create two lined spaces between your heading and the point at which you type your greeting. Your greeting ideally should say "Dear, (recipient's name)". If you are sending your request to a specific company and do not know who handles payment plan requests, place a call to the company and ask. If you are sending a letter to a credit card company, a state or local tax collection bureau or the IRS, you may state your greeting as "To Whom It May Concern", "Dear Tax Agent", or "Dear Account Representative."

Step 3

Skip one line after your greeting before starting the body of your letter. If you have an account number or employer identification number, it should be stated before beginning your first paragraph so that the recipient is immediately aware of the account that the letter is referencing. This may be stated as "Re: Account No.: 1234-567."

Step 4

Write a paragraph or two explaining that you understand that a pay is due (or overdue) and that you intend to pay the full amount. Let them know your situation and directly ask that someone from the company or agency contact you to set up a payment plan because you are unable to pay your bill in full at the present time. Provide a phone number, physical address or e-mail address where you wish to be contacted.