A Step-by-Step Guide to Taking Control of Debt
If you’re struggling with repayments, talking to your creditor might feel intimidating – but reaching out is one of the most powerful steps you can take to regain control of your finances. Creditors are used to dealing with these situations and many are willing to work with you, especially if you’re honest and proactive.
Here’s how to approach the conversation with confidence, clarity, and calm.
Why It’s Important to Talk to Your Creditors
Ignoring the problem won’t make it go away – in fact, it can lead to:
- Additional charges or interest
- Damage to your credit score
- Legal action or bailiff involvement
On the other hand, communicating early can lead to:
- Payment plans that are more manageable
- Interest freezes or reductions
- Breathing space to get advice and make a plan
Step 1: Know Who You Owe and What You Owe
Before contacting anyone, gather the following:
- The name of the creditor or company
- Your account or reference number
- The total amount you owe
- Any letters or emails you’ve received
- What you can realistically afford to pay (based on your budget)
If you’re unsure of your full debt picture, a debt advice charity like StepChange, National Debtline, or Citizens Advice can help you work it out for free.
Step 2: Choose How to Contact Them
You can speak to your creditor by:
- Phone – quicker, but make notes of what’s agreed
- Letter or email – provides a written record
- Online chat or secure message – some creditors offer this via your account
Tip: If you feel anxious about calling, it’s okay to write instead. There are free letter templates available on sites like National Debtline and MoneyHelper.
Step 3: What to Say
When you contact your creditor, be honest but firm. You don’t need to go into personal details unless you want to. Here’s a simple script you can adapt:
“I’m contacting you because I’m having financial difficulties and am struggling to keep up with my payments. I’d like to discuss my options and arrange a more affordable repayment plan.”
If you’ve spoken to a debt adviser or worked out a budget:
“Based on my current financial situation, I can afford to pay £___ per month. I’d appreciate it if you could freeze interest and charges while I work through this.”
If you need time to get advice:
“I’m currently seeking debt advice and would appreciate a temporary pause on payments and interest while I do so.”
Step 4: Ask for What You Need
You can ask for:
- A reduced payment plan
- A payment break or pause
- Interest and charges to be frozen
- No contact for 30–60 days while you get advice (under Breathing Space rules)
The Debt Respite Scheme (Breathing Space) is a government-backed scheme giving you 60 days’ protection from most enforcement action, interest, and fees – but it must be set up by a registered debt adviser.
Step 5: Get Everything in Writing
Always ask for written confirmation of:
- Any new payment agreement
- The start date and duration
- Whether interest and charges will be paused
- How this will be recorded on your credit file
Keep a record of any letters, emails, or notes from phone calls (include dates and the name of the person you spoke to).
Step 6: Get Free Help if You Need It
You don’t have to do this alone. Free, confidential, and non-judgmental support is available from:
- StepChange – stepchange.org – online or phone support
- National Debtline – 0808 808 4000 – free advice and letter templates
- Citizens Advice – local offices or citizensadvice.org.uk
- MoneyHelper – tools and guidance from the government-backed service
Final Thoughts: You Deserve Support, Not Shame
Struggling with debt can be overwhelming, but taking that first step and talking to your creditor is a brave and positive move. Most creditors would rather find a solution with you than take further action – and they’re required to treat you fairly, especially if you’re considered vulnerable.
Remember, asking for help is a sign of strength, not failure. You are not alone, and there is a way forward.