Should I Speak to My Creditors if I Can’t Pay?
If you know you cannot make a payment, contacting the organisation early can be better than waiting for missed payments and letters to build up.
If you know you cannot make a payment, contacting the organisation early can be better than waiting for missed payments and letters to build up.
You do not need to have solved the whole problem before making contact.
What should I say?
Explain that you are experiencing financial difficulty, why your circumstances have changed if you are comfortable doing so, and what you can realistically afford.
Ask what support or temporary arrangements are available. Some organisations have specialist financial-difficulty teams.
Do not promise money you do not have
It can be tempting to agree to a payment simply to end an uncomfortable call.
Before agreeing, make sure the amount leaves enough for essential living costs and priority commitments. An unaffordable arrangement is likely to fail and can increase stress.
What if my circumstances are temporary?
Tell the creditor if you are waiting for wages, benefits, an insurance payment or another known change.
Ask whether payments can be reduced, paused or rearranged while the position becomes clearer. What a creditor can offer depends on the debt and its rules.
Keep a record
Keep copies of emails and letters and make a short note of telephone calls, including the date, name of the person you spoke to and what was agreed.
If an arrangement is made, ask for confirmation in writing.
What if I owe several organisations?
Get free debt advice before trying to negotiate a complicated set of repayments independently.
An adviser can look at the whole household budget and help prevent one creditor receiving money that is needed for a more urgent debt.
7.40: What Are Priority and Non-Priority Debts?
7.43: Creditors Keep Contacting Me, What Can I Do?
7.50: Where Can I Get Free Debt Advice?
Important information
This guide provides general information and is not intended to provide financial, benefits, debt, housing or legal advice. Individual circumstances can be different. Check current information from official sources and seek advice from an appropriately qualified or authorised adviser before making important financial decisions.