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updatedAt: 2026-03-18T15:22:37.000Z
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Fetch the complete documentation index at: https://developers.pismo.io/pismo-docs/llms.txt. Use this file to discover all available pages before exploring further. Append .md to any documentation page URL to get its markdown version.

# Installment agreements

If a cardholder wishes to renegotiate only overdue debt, use an **installment agreement** contract.

After implementing an installment agreement, the debt due on an account redistributes across the next statements. The platform then adds a credit equal to the refinanced balance and overdue balance from other past statements. It creates installments for current and future statements. Refer to the figure below.

<Image title="Credit card refinancing overview - 3.png" alt="Redistributing the debt across the billing cycles" align="center" src="https://files.readme.io/ae18778-Credit_card_refinancing_overview_-_3.png">
  Redistributing the debt across the billing cycles (shown in orange)
</Image>

After implementing the installment agreement of the 100 that was overdue in Cycle 1, the cardholder needs to make a payment of 160 in Cycle 2 to avoid becoming overdue in DD2. The cardholder also has to make a payment of 60 in DD3 in Cycle 3.  To avoid becoming overdue again, the cardholder has to pay 10 in the 10 subsequent due dates.

## Creating an installment agreement

Before you create a new payment agreement, make sure the customer is eligible for refinancing. So, check with your organization’s refinancing terms, procedures, and conditions (for example, debt-to-income or credit history).

If the customer is eligible for refinancing:

1. Get their account details using the [Get account](https://developers.pismo.io/pismo-docs/reference/get-accounts-v1-accounts) endpoint.
2. Copy the number from the `current_cycle` field in the response.
3. Execute the [List statements v3](https://developers.pismo.io/pismo-docs/reference/getbystatementid) endpoint, entering the number from Step 2 into the `startCycle` field.
4. Get the refinanced amount from the `previous_balance` field in the response.
5. Use your own calculation method based on the refinanced amount to generate a new payment plan.

> 📘
>
> Since the Pismo platform supports a collection of installments, you can use any desired amortization system to calculate a payment agreement.

7. After you have the plan, use [Create payment agreement](https://developers.pismo.io/pismo-docs/reference/installmentpaymentsv4) to create a new installment agreement.
8. In this endpoint, set the following fields to `false`.

   * `statement_agreement`
   * `compulsory`
   * `settle_accural`
9. Use the `installment` body parameter to create installments for the payment agreement.
10. Populate the remaining fields. Note that IOF fields only apply to Brazil. If you’re not in Brazil, enter 0 in the IOF fields.
11. Execute the endpoint.

Once you’ve created a new installment agreement, the Pismo platform posts the new installments on the currently open and future statements. If the customer needs to cancel the agreement, use [Cancel payment agreement](https://developers.pismo.io/pismo-docs/reference/deleteinstallmentpaymentbypaymentagreementid).

## Manage installment agreements

Use the other endpoints in the [Refinancing API](https://developers.pismo.io/pismo-docs/reference/getinstallmentpayments) to search for and manage your installment agreements (as well as other types of payment agreements).