- When you make a late payment, write a letter to your creditor. Assure him/her of your continued commitment to making regular and timely payments on your account. Grab this opportunity to explain why your payment is late.
- Get the creditor's attention to the current amount you sent.
- Tell him/her that you are sorry for making a late payment. Mention the reason, if it seems appropriate to you.
- Express gratitude for his/her understanding.
- Assure the creditor about your commitment and ability to stick to the agreement.
[State, ZIP Code]
[State, ZIP Code]
[Subject: Normally bold, summarizes the intention of the letter] -Optional-
Dear [Recipients Name],
First of all, I'd like to express my appreciation for your efforts to understand our financial situation. Things have certainly become more complicated for us after my father passed away. In any case, I am relieved to say that our family will be settling all our debts now. I have attached a check amounting to $850.00 to cover the entire amount we owe. Again, thank you for allowing us to settle this at a time which was more realistic for us.
[Senders Title] -Optional-
[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -
Example credit letter after agreeing to pay later.
Further things to consider when writing credit letters to creditors
Credit letters are a written commitment by a third party, issued to guarantee payment of goods and services only, when the seller provides the acceptable documentation. Credit letters are usually issued by financial institutions such as banks. However, in some cases, mutual funds and insurance companies may issue these letters under certain circumstances. Credit letters are used to guarantee that the buyers' payments to the sellers will be received for the correct amount and on time. If something comes up and the buyer is unable to pay the seller, the financial institution that issued the letter pays the seller.
Credit letters are usually instructions, so you only need to include basic details. Include details of the seller, the buyer, the receiving bank as well as the amount of money to be transferred. Since this is a formal letter, the tone must be professional. For added security, include a list of terms and conditions, which all parties agree on. Where appropriate and if necessary, mention any requirements from the seller. Let all parties know that the amount can be drawn any time from the day the letter is written to the time it expires.
Letters to Creditors
Letters to creditors are letters written to people or companies to whom money is owed. A creditor can be a bank, person, or any financial institution. If you have got some debts, you will definitely find yourself writing letters to creditors at some point. They could be inquiry letters to request information about your debts, cancellation letters to cancel credit agreements, or inform letters to inform the creditors of changes in the payment methods. Letters are a great and powerful tool to use when communicating with your creditors. They can help you to handle tough issues and protect your rights.
When writing letters to creditors, you need to make sure that you have all the required information. Address the letter to the appropriate person and use the right salutation. State clearly why you are writing the letter. Provide important details such as your contact and account information - you can reference this information before the body of the letter. If you had called the recipient regarding the issue, mention that in the letter. Mention other documents enclosed with the letter if any. Be brief and maintain a professional tone. Finish with your full name and signature.