Promissory letter template
Reviewed in November 2026
A promissory letter is a signed letter in which a debtor admits a debt and commits to pay it by set dates. It reads like a letter and works like a short promise to pay.
What it includes
- Date and place
- Creditor name
- Debtor name, address and ID
- Origin of the debt
- Total owed today in words and figures
- Payment schedule
- Payment method
- Signature
Promissory letter: full text
[Date] [Place] To: [Creditor name] [Creditor address] Subject: Promissory letter for the balance of [origin of the debt] I, [debtor name], with [ID type and number], residing at [address], acknowledge that I owe [creditor name] the sum of [amount in words] ([amount]) for [origin of the debt, for example materials bought on credit in August]. I promise to pay this amount as follows: [date 1] [amount] [date 2] [amount] [date 3] [amount] I will pay by [method] to [account or place]. If I miss a payment, the full remaining balance becomes due. ____________________________ [Debtor name] [ID number] Received by: ____________________ Date: ____________
Promissory letter or promissory note
| Point | Promissory letter | Promissory note |
|---|---|---|
| Form | A letter addressed to the creditor | A short standard instrument |
| Tone | Explains the debt and the reason | Only the promise and the terms |
| Typical use | Overdue accounts, rent, tuition | Loans and installment sales |
| Transfer | Usually not transferable | Can be payable to order |
For a loan or a sale on credit, a promissory note is the cleaner document.
When it is used
- A client with an overdue account agrees a new payment plan.
- A tenant commits to clear rent arrears by a date.
- A parent commits to settle school fees after a delay.
- An employee commits to repay a salary advance.
- A buyer commits to the balance of a purchase.
What goes in each part
| Part | What it says |
|---|---|
| Opening | Who writes and to whom, with the date |
| Acknowledgement | The debt, its origin and the amount owed today |
| Promise | The amount in words and figures and the payment dates |
| How | The method and the account |
| If late | What happens if a payment is missed |
| Signature | Debtor's name, signature and ID number |
A promissory letter worked out
Kevin Reyes owes Northside Hardware PHP 36,000.00 for materials bought on credit in August.
He writes a promissory letter to pay PHP 12,000.00 on the 15th of November, December and January.
The store keeps the signed letter and sends a reminder two days before each date.
Common mistakes
- No total owed today. The letter should state the balance.
- Vague dates like «soon» or «next month».
- No signature or no ID number.
- A schedule that adds up to a different total.
- Threatening language from the creditor in the reply.
Field by field
- Opening: the date, the place and the creditor's name. Write «To: Northside Hardware» as the first line.
- Acknowledgement: the origin and the balance owed today. «Materials bought on credit in August» is clear enough.
- Amount: PHP 36,000.00 in figures and thirty-six thousand pesos in words. Words stop anyone from adding a zero later.
- Schedule: one line per payment with its own date. Write 15 November 2026 rather than «mid-November».
- Method: cash at the store, bank transfer or e-wallet. Name the account so the payment is easy to trace.
- If late: what happens when a payment is missed. A common clause makes the whole balance due.
- Signature: the debtor's full name, signature and ID number. Add a phone number for reminders.
Variants of the promise
Only the promise paragraph changes in each version below.
- Single payment: «I promise to pay the full amount of [amount] on [date].»
- Rent arrears: «I promise to pay the rent arrears of [amount] for [months] on top of the current rent.»
- Salary advance: «I promise to repay the salary advance of [amount] in [number] monthly payments from [date].»
- With a co-maker: «[Co-maker name] signs below and will pay any amount I fail to pay.»
A second example from the United States
Dana Brooks rents a flat in Columbus and fell two months behind.
Her arrears are USD 2,200.00 and her landlord asks for a promissory letter.
She promises USD 550.00 on the first of each month for four months.
The letter says the arrears are paid on top of the regular rent.
The landlord signs as received and returns a copy to Dana.
Each month the landlord gives one receipt for the rent and one for the arrears.
Separate receipts show clearly how much of the old debt remains.
How the creditor answers the letter
Reply in writing to accept the schedule or to suggest a change.
«Hello Kevin. I received your promissory letter for PHP 36,000.00. The three dates work for the store. Thank you.»
Then send a receipt after each payment with the new balance.
If the schedule changes later, ask for a new signed letter.
When a payment is missed
Send a short reminder the day after the missed date.
«Good morning Kevin. The PHP 12,000.00 due on 15 December has not arrived yet. Could you tell me the date you can pay?»
Write down the new date the debtor gives and confirm it by message.
If two dates pass without payment, send a collection letter with the full balance.
Keep the signed promissory letter with every receipt and message in one folder.
That folder is the proof a lawyer asks for if the debt goes further.
Let the reminders go out on their own
Load the schedule into Makatea and each date gets its WhatsApp reminder. Every payment is recorded and the balance updates. Try it free for 14 days, no card needed.
Free on Makatea: promissory note template · rent receipt template · free receipt template
Frequently asked questions
Is a promissory letter legally binding?
Yes, as a written acknowledgement of a debt signed by the debtor. Local rules decide how it is enforced.
Who writes the promissory letter?
The debtor writes and signs it. The creditor keeps the original.
Can the letter include installments?
Yes. List each date and amount and make sure they add up to the total.
Should a witness sign it?
Not always. A witness or a co-maker helps for larger amounts.
What is an example of a promissory letter for payment?
Kevin's letter above is one. It admits PHP 36,000.00 and promises three payments of PHP 12,000.00.
How do I write a promissory letter to pay a debt?
Admit the debt and its origin in one line. Then list the dates and amounts and sign with your ID number.
Is this template legal advice?
No. This template is a private document between the parties. It is not legal advice and it does not replace a lawyer for large sums.
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