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Promise to Pay Agreement / Letter Template
Confirm repayment terms in writing and reduce misunderstandings with this Promise to Pay Agreement / Letter Template.
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Promise to Pay Agreement / Letter Template
Date: [Date]
From (Debtor): [Full Name / Business Name]
[Address]
[Phone] | [Email]
To (Creditor): [Full Name / Business Name]
[Address]
[Phone] | [Email]
1. Amount Owed
1.1 I, [Debtor Name], acknowledge that I owe [Creditor Name] the total amount of $[Amount].
1.2 Reason for the debt (optional): [Invoice # / services / loan / other].
2. Payment Terms
2.1 Payment Schedule (Select One):
☐ One-time payment of $[Amount] due on [Due Date]
☐ Installments of $[Amount] due on: [Dates]
☐ Other schedule: [Describe]
2.2 Payment Method: ☐ Bank transfer ☐ Check ☐ Cash ☐ Other: [Method].
2.3 Payment Destination: [Payment address/account details].
3. Late Payment (Optional)
3.1 Payment is late after [] days.
3.2 Late fee: $[] or [__]% (if permitted).
4. Default
4.1 If I fail to make a payment as agreed, the remaining balance may become immediately due (if allowed), and the Creditor may pursue lawful collection options.
5. No Waiver
5.1 Acceptance of partial or late payments does not waive the Creditor’s rights unless agreed in writing.
6. Governing Law (Optional)
6.1 This letter/agreement is governed by the laws of [State/Country].
Signatures
Debtor: [Full Name / Business Name]
Date: [Date]
Signature: ___________________________
Creditor (Optional Acknowledgment): [Full Name / Business Name]
Date: [Date]
Signature: ___________________________
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Easy-to-understand jargon
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Promise to Pay Agreement / Letter Template
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
PROMISE TO PAY AGREEMENT / LETTER TEMPLATE FAQ
What is a promise to pay letter or agreement?
A Promise to Pay Agreement (or letter) is a written confirmation that a person or business owes money and commits to pay it back under specific terms. It’s commonly used for overdue invoices, personal loans, informal debts, or settlement arrangements.
Is a promise to pay letter legally binding?
Often yes, if it clearly states the amount owed, payment schedule, and is signed by the parties. Enforceability depends on local law and the underlying debt. This template is a general format to document repayment terms.
What should be included?
Include: parties, amount owed, reason for the debt (optional), payment schedule, due dates, late fees (optional), where payments go, and what happens if payment is missed. This template includes a short agreement format plus a letter-style format.
Should you include interest or late fees?
You can, if permitted by law and agreed by the parties. If you want a simple letter, you can omit interest and keep it to a clear schedule.
Should you notarize it?
Not usually required, but notarization can help prove identity and signature authenticity. This template includes optional witness and notary sections.
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