Free Australian letter template

Payment plan letter template

Propose an amount and schedule you have worked out you can manage. Read the step-by-step guide first if you are unsure.

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Private in this tab. DebtReply does not save or send your entries. Downloading, copying or opening email puts the letter on your device or in your chosen app. Refreshing can lose your work.

01 Start with the basicsHave you received court documents about this claim?

Your name

Your postal address (optional)Only include contact details you want in your letter.

Letter date

02 Identify the claim

Collector or creditor nameUse the organisation’s verified name.

Account or collector reference

Original creditor (optional)

Amount claimed in AUD (optional)

How did they contact you?

Date of letter, call or message (optional)

03 Make the request yours

Open the private budget worksheet in a new tab to check your figures. It will not transfer them into this letter.

Proposed payment in AUD

Payment frequency

First payment date

This is a proposal, not an agreed plan. Check the collector’s written response.

Before you send

Read your complete draft

Check the recipient independently and read every line.
Keep a copy and a record of when and how you sent it.
Attach relevant copies yourself. The builder does not attach files.
If the claim is old, get advice before paying or admitting it.

I have read the preview and checked the details are accurate.

Your draftUpdates as you type

Proposed payment arrangement

[Your name]

[Date]

To: [Collector name]

Reference: [Reference number]

Proposed payment arrangement

Dear Sir or Madam,

I am writing about your recent contact, reference [Reference number].

After reviewing my income and expenses, I propose payments of [Amount] per fortnight, starting [Start date].

Please let me know whether you accept this proposal. Please confirm the current balance, payment details, and how interest and fees would be handled during the arrangement.

Please also confirm when the arrangement would be reviewed. If you cannot accept this proposal, please explain why and tell me what other assistance you can consider.

Please respond in writing.

Yours faithfully,

[Your name]

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This is general information to help you write your own letter. It isn't legal or financial advice and doesn't consider your situation. For free, confidential help, call the National Debt Helpline on 1800 007 007.

Check every detail before sending. This is general information, not individual advice.

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When to use this letter

Use a payment proposal when you accept the claim and have checked what you can manage. Moneysmart's debt-management guidance recommends comparing income with expenses. Its collector guidance describes proposing a manageable arrangement and asking for it in writing.

Enter your chosen amount, payment frequency and proposed start date. Check those dates against your income and bills. A monthly average is useful for planning but does not show the balance available on every payment day. If the debt is disputed or old, get advice about that issue before offering money.

What to attach

Keep a budget showing how you arrived at the proposal. Include irregular commitments in your own planning, such as annual bills, rather than considering only this week's spending. The budget worksheet keeps entries in your browser and provides arithmetic, not a recommended offer.

The builder does not ask for bank login details or create a direct debit. It has no attachment upload. If you choose to share supporting budget information, verify the recipient and send only relevant copies through your own chosen channel. Keep a copy of the proposal and any records you share.

What happens after you send it

The letter asks for the balance, payment method, treatment of interest and fees, and a review point. Compare the response with your proposed amount, frequency and first date. If terms differ, ask for clarification instead of treating your original proposal as accepted.

Moneysmart recommends contacting the lender when an arrangement becomes difficult. Keep records of changes and discussions. DebtReply does not process payments, negotiate terms or monitor whether either side follows an arrangement. A financial counsellor can help when a suggested schedule does not fit your circumstances.

Common questions

Does this letter set up automatic payments?

No. It prepares a proposal only. DebtReply does not create a direct debit, make payments or contact the recipient.

Can I choose how often to pay?

The builder supports weekly, fortnightly and monthly proposals. You choose the schedule and ask the recipient to confirm the terms.

Does the worksheet tell me what to offer?

No. It shows calculations from your entries. Check missing costs and payment dates, and get free help if you are unsure.

Guidance checked 18 October 2026.

Sources you can check

Dealing with debt collectors ASIC Moneysmart · Checked 18 October 2026
Get debt under control ASIC Moneysmart · Checked 18 October 2026
Financial hardship ASIC Moneysmart · Checked 18 October 2026