[Sample] Letter Explaining Late Payments

Learn how to write a letter explaining late payments. Use our sample letters explaining late payments as a template for your late payment letter.

Sample 1 – Letter Explaining Late Payments

[Your Name]
[City, State ZIP Code]


[Recipient Name]
[City, State ZIP Code]

Dear [Recipient Name],

I am writing to express my sincerest apologies for the late payments on my account. I understand that my recent payments have been overdue, and I take full responsibility for the inconvenience and stress this has caused.

The reason for the late payments is [insert reason for late payments, such as financial hardship, illness, job loss, etc.]. Despite my best efforts to keep up with my payments, I have fallen behind.

I want to assure you that I am committed to resolving this situation and bringing my account current. I have taken steps to improve my financial situation and will be making a payment [insert amount and date of payment] to begin catching up on my overdue balance.

Thank you for your understanding and patience during this difficult time. I would like to establish a payment plan to repay the overdue amount and prevent any future late payments. I hope that we can work together to resolve this matter in a satisfactory manner.

Please let me know if there is anything else I can do to assist in resolving this issue. I can be reached at [insert phone number] if you need to contact me.


[Your Signature]
[Your Name]

Sample 2 – Letter Explaining Late Payments

February 17, 2022

Maxwell Smart
ABC Mortgage Company
3278 Stanhope Lane
Chillicothe, Ohio 45601

Dear Mr. Smart,

Thank you for considering my mortgage application. I appreciate the time and effort that my adviser, Ken Willis, has devoted to helping me work through this process.

I am writing this letter to explain why late payments were made to (company name) from (beginning date to end date.) 

Meeting my financial obligations is very important to me, and I regret that this negative situation ever occurred.

In July of 2021, the company that employed me for 10 years was acquired by another corporation. Because of this merger, my position was eliminated with only two weeks notice. 

Due to the challenging job market, I was not able to secure full-time employment for almost two years, even though I applied for multiple positions every week.

During this time, my family’s finances were strained, and we drained our savings to pay for our daily expenses. 

We simply did not have enough cash on hand to make our mortgage payments in a timely fashion.

I am thankful to report that I have been working at a new position for over a year now, and my family has regained our financial stability. We have paid off all of our past-due accounts. 

Now that we’ve seen how quickly income can change, we have also built up a significant emergency fund to protect us in the future. 

Thank you again for considering our application. As you examine our finances, I’m sure you will see that we are very capable of making future payments on schedule. 


Adam Jones

Frequently Asked Questions (FAQs)

1. What is the purpose of a letter explaining late payments?

Answer: A letter explaining late payments is a written explanation to a creditor, lender, or service provider about the reasons for one’s inability to make timely payments on a debt or bill. 

The purpose of the letter is to provide context for the late payments, to apologize for any inconvenience caused, and to offer a plan for resolving the situation.

2. What should be included in a letter explaining late payments?

Answer: A letter explaining late payments should include the following elements:

  • An opening statement expressing regret and apology for the late payments
  • A clear explanation of the reasons for the late payments, such as financial hardship, illness, job loss, etc.
  • A statement of commitment to resolving the situation and bringing the account current
  • Details of any steps taken to improve the financial situation and plans for making payments
  • An offer to establish a payment plan to repay the overdue amount and prevent future late payments
  • A closing statement thanking the recipient for their understanding and patience, and offering to assist in resolving the matter
  • The sender’s contact information for follow-up

3. What tone should be used in a letter explaining late payments?

Answer: A letter explaining late payments should be written in a sincere and apologetic tone. The sender should take full responsibility for the late payments and express regret for any inconvenience caused. 

The letter should also convey a sense of urgency and commitment to resolving the situation, while avoiding an aggressive or defensive tone.

4. Can a letter explaining late payments help prevent negative consequences?

Answer: A well-written and sincere letter explaining late payments can help prevent negative consequences, such as penalties, late fees, or damage to one’s credit score. 

By providing context for the late payments and demonstrating a commitment to resolving the situation, the sender can demonstrate their good faith and show the recipient that they are taking the matter seriously.

5. What should I do if the recipient is not satisfied with my letter explaining late payments?

Answer: If the recipient is not satisfied with the letter explaining late payments, it may be necessary to engage in further discussions or negotiations to resolve the situation. 

The sender should be prepared to provide additional information or documentation, if requested, and be willing to work with the recipient to find a mutually acceptable solution. If necessary, the sender may consider seeking the assistance of a debt counselor or financial advisor.

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