Agreement Letter for Payment of Debt

[Your Name/Company Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

To,
[Recipient’s Name]
[Recipient’s Address]
[City, State, ZIP Code]

Subject: Agreement Letter for Payment of Debt

Dear [Recipient’s Name],

This agreement is made on [Date] between [Creditor’s Name], residing at [Creditor’s Address] (hereinafter referred to as the “Creditor”), and [Debtor’s Name], residing at [Debtor’s Address] (hereinafter referred to as the “Debtor”), regarding the repayment of an outstanding debt amounting to $[Total Debt Amount].

Terms of Payment Agreement:

1. Debt Details:
   • Total Debt Amount: $[Total Debt Amount]
   • Reason for Debt: [Loan, Business Transaction, Personal Borrowing, etc.]
   • Date of Original Debt Agreement (if applicable): [Date]
2. Payment Schedule:
   • Initial Payment: $[Amount] due on [Date]
   • Subsequent Payments:
     • First installment of $[Amount] due on [Date]
     • Second installment of $[Amount] due on [Date]
   • Final Payment: $[Amount] due on [Final Due Date]
3. Mode of Payment:
   • The payment shall be made via [Bank Transfer/Cash/Cheque/Online Payment] to the following account:
     • Bank Name: [Bank Name]
     • Account Name: [Creditor’s Name]
     • Account Number: [Account No.]
     • SWIFT/IFSC Code: [Code] (If applicable)
4. Interest & Late Payment Penalties:
   • Interest Rate (if applicable): [Interest Rate]% per [month/year]
   • Late Payment Penalty: $[Late Fee] per [day/week/month] of delay.
   • If the Debtor fails to pay for more than [Number] days, the Creditor reserves the right to take legal action.
5. Acknowledgment of Payment:
   • The Creditor shall provide a written acknowledgment upon receiving each payment.
6. Legal Considerations:
   • If the Debtor fails to comply with the payment terms, the Creditor may initiate legal proceedings in [Jurisdiction].
   • Both parties agree to resolve disputes through [Arbitration/Mediation/Legal Action].

By signing below, both parties agree to abide by the terms of this agreement.

Creditor (Lender)
Signature: _______________________
Name: [Creditor’s Name]
Date: _______________

Debtor (Borrower)
Signature: _______________________
Name: [Debtor’s Name]
Date: _______________