Talking to your creditor

If you know you’re not going to be able to make your next payment, giving your creditor enough warning means they might be able to put a plan in place to help you before things get worse. 

Continuing to ignore the problem might mean you’ll face interest and late payment charges and eventually a loss of service, goods or put your home at risk.

Telling your creditor that you’re struggling will help them to help you. They should offer a range of support options that will work for both of you so it’s worth finding out what they can do.

If you have a physical disability, are experiencing mental health problems or are vulnerable in another way such as if you’ve suffered a bereavement, they might also have specialist teams to represent and support you along the way.

Creditors have a responsibility to support you and treat you fairly by offering affordable options to help pay off what you owe. 

You should never feel pressured into paying what you can’t afford, so it’s your right to let your creditor know what you’re able to offer them so they can work around this and come up with a fair arrangement that works for both of you.

Creditors can connect you to charities or other support that offer grants to help you pay your bills that you won’t have to pay back.

For example, the British Gas Energy Support Trust offers grants to people struggling with fuel costs, and you don’t have to be a British Gas customer to apply.

Creditors can work with you to agree more flexible payment arrangements. By doing so, you can avoid borrowing more money to pay them, which ultimately will cost you less.

Be aware, some solutions offered will affect your credit score, so it’s worth finding out before agreeing to a plan.

Some creditors might be able to offer you better tariffs or deals more suited to your needs and budget.

For example, if you’re on a low income or vulnerable, water, energy and broadband companies offer tariffs that guarantee you’re on the cheapest deals or which cap your bills.

Gather all the paperwork you have related to your bills.

Then go through it by writing down your account numbers and balances, payment due dates, monthly payments, how much you owe and contact details for the creditors.

Consider using a spreadsheet to organise your list of bills so you can easily track your payments, see how much you owe and pay each month.

Some bills are more important than others, so it's important to tackle them in the right order.

Once you’ve got your list, you can use our Bill prioritiser to help sort out which bills to deal with first and find out how to avoid missing payments

There are also useful tips on extra support that might be available that mean you can sort things out yourself.

If you owe money to several firms that you’re unable to pay back, focus on priority payments first like your rent or mortgage, Council Tax or Rates, and gas and electricity bills. These have the most serious consequences if you don’t pay anything towards them.

If you've missed payments, speaking to several creditors can feel overwhelming, so you can talk to a debt adviser first. They could even speak to your creditors on your behalf. They offer advice online, over the phone or near to where you live.

Talk to someone today using our Debt advice locator tool

Having all the information and account details you need on hand, including important reference numbers can help to keep you focused on the facts and make you feel more in control of the conversation as you'll be able to answer questions more easily.

If you’re asking for help because something has happened, for example you’ve lost your job or are struggling because of illness or accident, bereavement or relationship breakdown a doctor’s letter or recent bank statements that show your drop in income are useful to have nearby.

If you’re missing any documents, you can ask your creditor for copies or access them through your online account if you have one.

If it will take too much time to find things or you don’t feel up to looking, you shouldn’t let any missing documents stop you having a conversation with your creditor.

This is especially true if you’re vulnerable or suffering from low mental health and this feels like too much of an ask. Your creditor would rather you contact them and you can figure out what documents they need together.

Before you get in touch with your creditor, it’s a good idea to take the time to look at your income and essential outgoings to figure out how much you can afford to pay.

If you want to do a detailed budget, you can use our Budget Planner to help you. It only takes 20 minutes to fill in.

You don’t have to use fancy spreadsheets or planners. Some people use exercise books or you can use an online app. 

However, don’t worry if you can’t do this, your creditor will be able to go through it all with you and work it out.

Remember, everyone’s situation is different, and creditors should support and treat you fairly.

Hopefully, you’ll feel less stressed if you choose a way to contact your creditor that feels most comfortable for you. Here are the things to think about.

By phone

Pick a day and time that suits you, so you won’t have to leave the conversation to deal with other commitments.

Remember, contact centres often have busy times, so, if you can, it’s best to call them mid-morning, mid-afternoon or early evening instead of lunch time or first thing in the morning.

Online chat or WhatsApp

Consider using online chat or WhatsApp if you haven’t already. It puts you more in control of the conversation and you can respond in your own time.

By email or letter

If you’d prefer to email or send a letter Citizens AdviceOpens in a new window and StepChangeOpens in a new window have lots of sample letters you can use, for example, if you can’t afford to keep up with payments or want to ask for a temporary payment arrangement.

Remember, it may take a little longer to get a response, so better to use if your query isn’t urgent.

Dealing with money troubles can be stressful. It helps having someone you trust to help support you through the process, whether that’s helping you write and proofread your correspondence or helping you practise what you’re going to say.

A family or friend you trust can even act as your representative if communicating with the provider would be difficult for you.

It’s important to be honest about your situation and be as open as you feel comfortable with about anything that will help explain why you’re experiencing difficulty. Follow the below structure to help your conversation.

• Tell them you can’t afford your regular payment.
• Explain why you’re unable to pay, for example, if you’ve lost your job, have an illness or disability, or have recently experienced something that has had a negative impact on your life such as a bereavement.
• Ask them if it’s possible to change the terms of repayment.
• Depending on the creditor and what they can offer, find out whether or how it could impact your credit score.
• If you come to a new agreement, get it in writing.

The most difficult part is often finding the time and plucking up the courage to reach out to your creditor and ask for help.

But acting now could save you money and stress in the long run.

Having a conversation will give you the chance of working out a solution with your creditor before you miss a payment, and you might be surprised at how much better it makes you feel to take back some control of the situation.

Write down the main points you want to say and what you're struggling with.

Take notes during your conversation including the date and time of the call, the name of the person you're speaking to and the options they give you.

If you’re sending an email, copy yourself into the message so you can find it later.

Keep your notes in a safe place – they are a record of everything you’ve discussed.

Consider asking a family member or friend you trust for support and ask if they’ll do a practice phone call.

If you’re going to email your creditor, ask someone to check through the message before you send it.

You can also ask a friend or family member to speak on your behalf if you’re worried about the conversation. You’ll have to give permission.

Let your creditor know if you’re struggling with your mental health, have a cognitive or a physical disability, or have a vulnerability, for example, you’re a single parent, carer or an older person. Most creditors have teams that can offer extra dedicated support.

If you think you might have difficulties in communicating with your provider, you can ask someone you trust to act as your representative. You can also ask your creditor to see if they have a representative or appointee service or interpreting services for people with additional needs.

Also let them know if it will take you time to respond, for example, if you rely on someone else to help you communicate.

When you come to a new agreement, ask your creditor to email or send you a letter confirming the changes. This is so you have proof of your new arrangement.

You might also need to follow up the conversation with further information, including any documentation you’ll need to provide, for example, proof of unemployment.

When you’ve come to a new agreement, be sure to get it in writing. Ask your provider to send a letter that outlines the new terms and conditions. 

When you receive it, review the document closely to make sure that the agreement is correct and that no terms have been added or left out that you haven’t agreed to.

If there’s an error, make sure you contact your creditor to discuss your arrangements again and get a copy of the new agreement before making payments.

If everything is correct, start making your new payments and stick to the plan.

It’s important to keep creditors informed about any changes to your financial situation.

Make a note of who you need to speak to if you have to call back. If you have agreed check-in points, put them in your calendar, so you don’t forget.

If your creditor wants to call you, say how you’d like to be contacted and give the best times they can reach you.

If you find yourself getting behind on your payments, speak with your creditor as soon as possible to find a new payment solution that works for you to get you back on your feet.

If there’s room to make a few cutbacks so you can meet your repayments, then this might be something to consider.

Your creditor has to work with you to try and find a solution but sometimes it won’t be possible. They may then suggest referring you to debt advice. This can be a really good idea, particularly if you are struggling with other payments as well. 

Some creditors can pass you straight over to debt advice on the same call but if you need more time to think or want to choose your own adviser, use our debt advice locator tool to find phone, online and face-to-face services in your local area.