Example of an advice letter to send to a creditor

(Italics show where you put in your own words)

                                                                                                                                                                                                                                                Your Name and address 
                                                                                                                                                                                                                                               

Creditor Name and address 

Date 

Type your reference here 

Dear Sir/Madam

Type your account name here
Type your account number here

I am sorry that I am unable to keep up my monthly payments to your company. This is because <type your reason here>. I have  <state actions you have taken to improve your situation, such as claimed benefits>. My situation is unlikely to improve for at least 3 months.

I enclose a copy of my financial statement. This shows income and expenses for me and the offers I can make to my creditors. The offers have been worked out based on what I owe so that each creditor gets a fair share of the money.

The amount I can pay you is  £<state the amount>  a month. I will be able to make my first payment on <state date>.

Please agree to freeze interest and other charges on my account as long as I keep to the payments. I will let you know about any changes in my circumstances.

If you are unable to accept my offer and freeze interest and charges, please explain why. Thank you for your help and I look forward to hearing from you.

Yours faithfully



Ann Other