How to Change a Payment Plan

Companies use payment plans to accommodate their customers. Most of the time, payment plans or installment agreements are used to pay past-due debts. According to the IRS website, an installment agreement allows for the full payment of the tax debt in smaller, more manageable amounts. Unfortunately, circumstances arise, in your life, that may cause you to need to change the payment plan. Many times, creditors are willing to adjust payment plans if you contact them early and are willing to comply with the revised plan.

Instructions

Change the Plan

1




Write down your current budget. Include the amount you can consistently pay towards the payment plan.

2

Contact the creditor. Explain any changes in your financial situation. Tell the creditor the new amount you can commit to.

3

Ask for the new payment plan in writing. If the creditor agrees to change your payment plan, be sure to get it in writing.

4

Pay on the new plan consistently. Continue to make consistent payments on the new plan. If you need to change the payment plan again, repeat the same steps.