Example of a letter to ask a non-priority creditor to accept reduced payments

(Italics show where you put in your own words)

Creditor’s name and address                                                                                                       Your address

Date

Dear Sir or Madam,

Account Number

I am/We are writing to you because I am/we are in financial difficulties. My/our financial statement is enclosed.

Briefly explain the reasons for your financial difficulties, particularly any fall in income or increase in expenses since you took out a loan. Difficulties could be anything from unemployment, ill health, bereavement or relationship breakdown.

If any expenses are particularly high because, for example, someone has a special diet or needs extra heating, briefly explain this here.

In the circumstances, please could you accept payments of £x a month and freeze any interest or charges that are accruing. I/we intend to make the first payment on DDMMMYYYY. If this is acceptable, please provide details of how I may make my payments.

I/We understand that you may wish to review the situation in, say, six months time.

I/We look forward to hearing from you.

Yours faithfully,