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PAYMENT ARRANGEMENT ACKNOWLEDGEMENT

Between:
[Creditor full name / company] (“the Creditor”)
and
[Debtor full name / company] (“the Debtor”)

1. BACKGROUND
1.1 The Debtor is indebted to the Creditor in the sum of R[amount] arising from [briefly describe debt, e.g. invoice no. 0123 dated ___].
1.2 The Debtor acknowledges the debt and wishes to pay it off in instalments. The Creditor has agreed to accept payment on the terms set out in this acknowledgement.

2. ACKNOWLEDGEMENT OF DEBT
The Debtor irrevocably and unconditionally acknowledges owing the Creditor the sum of R[amount] as at [date].

3. PAYMENT TERMS
3.1 The Debtor shall pay the debt in [number] equal monthly instalments of R[instalment amount] each.
3.2 The first instalment is payable on or before [date]. Subsequent instalments are payable on the [day] of each successive month.
3.3 Payment shall be made by EFT into the following account:
   Account holder: [name]
   Bank: [bank]
   Account no.: [number]
   Reference: [reference]

4. INTEREST AND COSTS
4.1 Interest shall [not / continue to] accrue on the outstanding balance at [rate]% per annum.
4.2 The Creditor shall suspend collection action while the Debtor honours this arrangement.

5. BREACH
Should the Debtor fail to pay any instalment on the due date and remain in default for seven (7) days after written notice, the full outstanding balance shall become immediately due and payable, and the Creditor may take all legal steps to recover the debt, interest and costs.

6. NO NOVATION
This acknowledgement does not constitute a novation of the original debt; it records an agreed method of payment.

7. WHOLE AGREEMENT
This document contains the entire arrangement between the parties in respect of payment of the debt.

Signed at ___________ on ___________ 20___.

___________________________      ___________________________
Debtor                                                   Witness

Signed at ___________ on ___________ 20___.

___________________________      ___________________________
Creditor                                                 Witness

This template is a starting point and not legal advice. Adapt to your facts.