Sample Unable to Pay Debt Letter

Here is a sample unable to pay debt letter. It is important to keep copies of all documents and letters that are exchanged in this type of transaction. The letter should be sent by certified mail, so the sender has proof that it was received.

Sample Unable To Pay Debt Letter

Linda Gibson
2300 Action Street
Oakland, CA, 94703

May 17, 2019

ABC Debt Company
3245 – 11th Street
Portland, OR, 97206

RE: Acct # 5656-9878-9668

To Whom It May Concern, 

I am writing this letter to inform you that I am temporarily out of work, which has caused serious financial difficulty for my family. I have workers’ compensation as well as unemployment, but these are just enough to pay my mortgage and feed my family.

Because of my hardship, I am asking each creditor to kindly accept a reduced payment of $100 for the next six months. I expect to be back to work and receiving my full salary by that time. If I am able to work sooner, I will inform you and return to making the usual payments of $250 per month.

I prefer to deal with you directly and not a collection agency. I fully intend to pay my debts, but I need a bit more time. I also request that you withhold any interest on my debt for the next six months.

Please send a response to this letter in writing at the address above. I can also be reached at 505-123-4447 and at Thank you for taking the time to consider my request, and I hope to have a favorable reply.


Linda Gibson