Free Custom Payment Agreement Layout Template
Custom Payment Agreement Layout
This Custom Payment Agreement (the "Agreement") is made and entered into on [Date], by and between:
[Full Legal Name of the Creditor], ("Creditor")
Address: [Creditor’s Address]
Phone: [Creditor’s Phone Number]
Email: [Creditor’s Email Address]
AND
[Full Legal Name of the Debtor], ("Debtor")
Address: [Debtor’s Address]
Phone: [Debtor’s Phone Number]
Email: [Debtor’s Email Address]
Collectively referred to as the “Parties”.
1. Background
This Agreement outlines the terms and conditions under which the Debtor will make payments to the Creditor for an outstanding amount.
2. Outstanding Debt
The Debtor owes the Creditor the sum of [Total Amount Owed] (the "Debt"). The Debt was incurred for the following purpose:
[Provide a description of the goods/services provided or reason for debt].
3. Payment Terms
The Debtor agrees to repay the Debt according to the following schedule:
-
Total Debt Amount: [Total Amount Owed]
-
Initial Payment: [Amount of Initial Payment] due by [Due Date].
-
Payment Installments: [Amount] per month, due on the [day] of each month, starting on [Start Date].
-
Final Payment: The final payment of [Amount] is due on [Final Payment Due Date].
4. Payment Method
Payments will be made by the Debtor to the Creditor via the following method:
-
[Specify Payment Method: Bank Transfer, PayPal, Check, etc.]
-
Account Details: [Provide relevant payment details like bank account number, PayPal email, etc.]
5. Late Payments
If a payment is not received by the due date:
-
The Debtor will incur a late fee of [Late Fee Amount] for each [time, e.g., week/month] the payment is overdue.
-
If the payment remains overdue for more than [Number of Days], the Creditor has the right to take legal action or pursue collections.
6. Prepayment
The Debtor may pay off the Debt early without penalty. Early payments will be applied to the Debt as follows:
-
If the Debtor makes a prepayment, the remaining balance will be adjusted accordingly, and future payment amounts may be reduced.
7. Default
If the Debtor defaults on the payment agreement by failing to meet the terms outlined above, the entire remaining balance of the Debt becomes due immediately.
8. Modifications
Any modifications or amendments to this Agreement must be in writing and signed by both Parties.
9. Governing Law
This Agreement will be governed by and construed by the laws of the state of [State/Country].
10. Signatures
By signing below, both Parties agree to the terms and conditions of this Agreement.
Creditor’s Signature: ____________________________
Date: _______________
Debtor’s Signature: ____________________________
Date: _______________
