Australian debt guide
How to set up a payment plan with a debt collector
By DebtReply · Sources checked
Prepare a budget before proposing a repayment amount. Include essential costs, other commitments and irregular expenses. Use the letter to suggest a payment frequency and start date, then ask for written terms. A proposal is not an accepted plan, and a worksheet cannot decide which payment is suitable for you.
How do I choose a proposed amount?
Moneysmart recommends listing income and outgoings. The private budget worksheet converts weekly, fortnightly, monthly and annual figures to a monthly average. It displays the difference and leaves the decision to you. Check actual bill dates too: an average can hide a difficult week.
What should the letter ask for?
Our payment-offer letter sets out your proposed amount, frequency and first date. It asks for the balance, payment method, treatment of interest and fees, and a review point. Compare the written response with your proposal line by line. If anything differs, put the question in writing before assuming it has been agreed.
What if the plan stops being manageable?
Moneysmart’s hardship guidance recommends contacting the provider when an arrangement becomes difficult. Keep a note of the change and ask about assistance. If the balance itself is disputed or old, get advice about that issue before choosing a payment proposal.
What can I do next?
- List your regular and irregular costs.
- Check the payment dates against your income dates.
- Enter your own proposed amount in the builder.
- Ask for written confirmation of the complete terms.
- Keep the agreement and payment records together.
Put your next step into words
Use a free starting-point letter, then check that every detail fits your situation.
Write the letter →Common questions
Does the worksheet choose an offer for me?
No. It shows arithmetic from your entries and does not recommend a payment.
Does downloading the letter set up payments?
No. DebtReply does not create a payment arrangement, direct debit or transaction.
Can I offer weekly or fortnightly payments?
The letter builder supports weekly, fortnightly and monthly proposals. The recipient still needs to respond to your proposal.
Sources you can check
- Get debt under control ↗ASIC Moneysmart · Checked 26 September 2026
- Financial hardship ↗ASIC Moneysmart · Checked 26 September 2026
This guide explains a process. It has not been reviewed as advice for your situation. How we use sources.