A payment plan agreement outlines an installment plan to repay an outstanding balance over a specified time frame. Creating a payoff letter is essential to any loan or mortgage repayment process.Our free templates and this guide can help you get started. Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free. A hardship letter explains to a lender why your current financial situation prevents you from making payments and proposes a solution.