Banking Category Banking: the easy, simple banking guide

How to write a letter of promise of payment

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.

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

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.

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

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.

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


  • 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.

Things Needed

  • Internet connection
  • Legal reference book
  • Promissory note form