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.

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Last Reviewed: May 25, 2023