When you are struggling to keep up with debt repayments, writing directly to your creditor to propose an affordable arrangement is often one of the most effective steps you can take. Creditors deal with these requests regularly. A clear, honest letter or email — setting out your situation and offering what you can afford — is far better than silence, missed payments, or calls you feel unable to answer.
What to include in your letter or email
Your communication does not need to be long or formal. The key elements are: a clear statement that you are in financial difficulty; a brief, factual explanation of why (redundancy, illness, reduced income — whatever applies); your current monthly income and essential outgoings (a simple income minus expenses summary); the monthly amount you can realistically afford to repay; and a request for them to freeze or reduce interest while the arrangement is in place.
Work out your income and expenditure first
Before you write, spend ten minutes listing your monthly income and your essential monthly outgoings: rent or mortgage, council tax, utilities, food, travel to work, and any other priority bills. The difference between the two is the money available for debt repayments. If you have multiple creditors, divide this available amount proportionally between them — paying more to the larger debts is a common approach.
What creditors can offer
When you contact a creditor proactively, they may agree to a reduced monthly payment, a temporary payment break, a freeze on interest and charges for a set period, or a referral to their specialist financial difficulty team. Not every creditor will agree to everything, but most regulated lenders are required under FCA rules to treat customers in financial difficulty fairly and to consider reasonable proposals.
Priority debts come first
If you have multiple debts, prioritise those with the most serious consequences for non-payment: rent or mortgage arrears, council tax, gas and electricity, and court fines. These are priority debts and should be addressed first, before credit cards or personal loans. Free debt charities can help you prioritise correctly if the picture feels complicated.
Get help drafting the letter
Free debt advice services including StepChange (stepchange.org), National Debtline (nationaldebtline.org), and Citizens Advice can help you draft a creditor letter and calculate an affordable offer. They deal with this every day and can often help you get a better outcome than approaching creditors alone.
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Ask Fin provides general guidance only, not regulated financial or debt advice. For help with creditor negotiations, contact a free debt advice charity.