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Offer of reduced payments to a creditor when money is tight (UK)
England, Northern Ireland, Scotland and Wales · in English · for debtors
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For a borrower or customer who cannot keep up with a loan, credit card, overdraft or bill after a change such as job loss, illness or a cut in income. The letter explains what has changed, offers a monthly payment you can afford and asks the creditor to accept it, freeze interest and charges, and confirm in writing. FCA rules require lenders to treat customers in financial difficulty with forbearance. Free debt advice is also available from MoneyHelper, StepChange and Citizens Advice anywhere in the UK, from National Debtline in Great Britain, and from Advice Direct Scotland and Advice NI. Send it by email and by first class post.
- Made for use in England, Northern Ireland, Scotland and Wales
- Last updated October 29, 2026
- Document in English
Where a UK document reproduces the words of legislation or of a government publication — UK, Scottish or Northern Irish — it contains public sector information licensed under the Open Government Licence v3.0.
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When to use this document
- You lost your job in the UK and cannot keep up the full repayments.
- After an illness your income dropped and the credit card payments became too much.
- You are falling behind and want to offer a smaller monthly payment.
- You want the creditor to freeze interest while you pay less.
What you fill in
The details the document asks for.
- Sender
- Sender's address
- Town or city
- Sender's postcode
- Date
- Creditor
- Creditor's address
- Account number
- What has changed (income, job, health …)
- Amount offered
- Date of payment
Common questions
- Does a creditor have to accept a reduced payment offer?
- No law forces a creditor to accept, but FCA-regulated lenders must treat customers in financial difficulty with forbearance and due consideration, for example by accepting reasonable reduced payments or suspending interest (CONC 7.3). Sending your income and spending figures makes a refusal harder to justify.
- Should I send a budget with a payment offer?
- It helps. A statement of income and essential spending shows that the offer is realistic. MoneyHelper's free budget planner, or the Standard Financial Statement used by free debt advice services, produces one that creditors recognise.
- Can a payment offer affect my credit file or the limitation period?
- Yes. A reduced-payment arrangement is usually recorded on your credit file. In England, Wales and Northern Ireland a payment, or a signed written acknowledgement of the debt (a signed offer to pay can be one), restarts the six-year limitation period on a debt that is not yet statute-barred; it cannot revive one that already is. In Scotland most debts are extinguished after five years unless a payment or a clear written acknowledgement restarts the period (Prescription and Limitation (Scotland) Act 1973, ss 6 and 10); an extinguished debt cannot be revived.
How you can sign this document
- Print it and sign by hand. The signature lines in the document are left blank on purpose — sign on them in ink.
- Sign it yourself with a qualified electronic signature. If you already hold a QES — Evrotrust, B-Trust, StampIT, ZealiD or any qualified provider on the EU Trusted List, on a card, a USB token, in a mobile app or in the cloud — our signing guide explains step by step how to sign this exact file without invalidating it. Step-by-step help, and a way to check it worked
DocMuse sells documents, not legal advice. Acceptance always depends on the recipient's rules and your local law.
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