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 by annual percentage rate. If late penalties are to be assessed, define when and how much.
Date the letter. The promise to pay letter shows intent to repay a debt; therefore, an incorrect date could void the transaction.
Identify the debtor and creditor. The letter should clearly identify the party who owes the debt and the party who will receive repayment.
Specify repayment date. Both parties must agree on the date the debt should be paid in full. The contract could provide penalties and remedies for the creditor to collect if the money owed is not paid by the date agreed upon by both parties.
Obtain signatures. Each person involved in the agreement should sign the letter.