How to write a letter of promise of payment

Written by kesha ward
  • Share
  • Tweet
  • Share
  • Pin
  • Email
How to write a letter of promise of payment
A promise to pay letter should be drafted as carefully as any other financial transaction. (Creatas Images/Creatas/Getty Images)

A promise to pay letter is an agreement to pay a debt on a specified date. A letter of promise for payment becomes a legal document when signed by the debtor and lender. A letter promising to pay a debt is also referred to as a promissory note. Standard promissory forms can be purchased from a stationery store or downloaded from the Internet. If there is additional information that is specific to the debt, a hand or typewritten letter containing the details of payment may be more appropriate. It's good to notarise the document.

Skill level:

Other People Are Reading

Things you need

  • Internet connection
  • Legal reference book
  • Promissory note form

Show MoreHide


  1. 1

    Date the letter. The promise to pay letter shows intent to repay a debt; therefore, an incorrect date could void the transaction.

    How to write a letter of promise of payment
    A written promise to pay should consists of the payment terms. (Jupiterimages/BananaStock/Getty Images)
  2. 2

    Identify how much is owed prior to drafting the letter. If interest or additional fees will be assessed, include the amount in the letter. Describe how the interest will be calculated, such as annual percentage rate (APR). If late penalties are to be assessed, define when and how.

  3. 3

    Identify the debtor and creditor. The letter should clearly identify the party who owes the debt and the party who should be repaid.

    How to write a letter of promise of payment
    Contracts are intended to outline the terms of agreement. (Jupiterimages/ Images)
  4. 4

    Identify and specify repayment date. Both parties must agree on the date the debt should be paid in full. If the money owed is not paid by the agreed date, the contract may provide penalties and remedies for the creditor to collect.

  5. 5

    Obtain signatures. Each person involved in the agreement should sign the letter.

Tips and warnings

  • Consider obtaining the service of a certified notary. Getting the letter notarised adds a layer of protection and verification.
  • Once a promise to pay letter has been signed, the payment must be made as agreed. If instalment arrangements are made and one payment is missed, it could be considered default. You could be sued.

Don't Miss

  • All types
  • Articles
  • Slideshows
  • Videos
  • Most relevant
  • Most popular
  • Most recent

No articles available

No slideshows available

No videos available

By using the site, you consent to the use of cookies. For more information, please see our Cookie policy.