I Owe Money and I Want to Set Up a Payment Plan With a Creditor. What Should I Do?
Here are some considerations:
- Do you only have income and assets from government or disability benefits?
- Can you afford to make payments?
- Is it your debt?
If you decide to set up a payment plan:
- Figure out how much you can afford to pay per month
- Agree on a total amount you will pay off over a specific period of time
- If you can afford it, negotiate to make one lump sum payment.
- Get any agreement you make in writing
- Request notice of a missed payment and the opportunity to cure (fix)
- Keep proof of every payment
- If your address changes, send a written notice to the creditor
This article will help you make an informed decision about setting up a payment plan with a creditor. It includes information on what money is exempt (not included) in debt collection.
Last Reviewed: May 25, 2023