Introduction

If you are making debt repayments to a creditor and your account is soon to be reviewed, you can ask the creditor to continue accepting your current terms with our free letter template. Some creditors may consider increasing your repayments or unfreezing interest on the account. With our free letter template, you can request they stick to the ongoing agreement in a polite and professional way. 

Because Debt Management Plans of repayment schedules are not legally binding, your creditor is allowed to change its mind or unfreeze interest in most instances. But by sending a letter asking them to continue accepting the current arrangement, you could avoid any expensive changes. 


Letter Template

To Whom It May Concern

Regarding Case #: [your case number]* (required)

I note that the above account is due to be reviewed.

I enclose a budget summary which shows that my overall financial circumstances have not improved since I last contacted you. Therefore, please continue to accept my monthly payments, as already agreed, and also continue to freeze interest and other charges on the account.

If my circumstances improve I will contact you again.

I look forward to hearing from you.

Yours sincerely


Downloadable Resource

The download links below take you to a Google document template where you can make a copy or save in any document format you like. Note, you may have to login to your Google account.

Download – Single (for one person)
Download – Joint (for couples)

Do creditors have to freeze interest?

Creditors are not legally forced to freeze interest payments on a debt. They cannot charge you excessive interest that goes above the daily cap or total debt repayment cap. 

However, they will often agree to freeze interest payments for people repaying debts with significant financial hardship. If you are only managing to pay back the interest and not pay back any of the debt, your situation is not improving and you are not getting out of debt. In this case, creditors typically freeze interest to help you get out of debt gradually.

If your account is being reviewed, there is no guarantee that your creditor will continue to freeze the interest. You must prove to them that freezing the interest is still needed for you to gradually get out of debt. Our free letter template and advice helps you achieve this. 

Do creditors have to accept a payment plan?

It is unlikely that a creditor will not accept a payment plan. If you are already making regular repayments and your account is to be reviewed, it is almost certain that they will continue to accept repayments over many months. 

Again, you will need to prove that the repayments you are making are the best you can do in your financial situation, so they do not increase the amount you need to pay. You will need to prove that your finances have not improved to make sure you are not forced to pay more. 

How can I prove my financial situation?

The best way to prove your financial situation is to send a budget outlining your incomings and outgoings each month. This will show the creditor that you can continue to meet the current repayment plan but cannot pay any more. The budget will be what helps prove you are in financial difficulty and interest should still be frozen. 

Make sure you send your letter and your evidence of financial hardship before your account is to be reviewed. 

What if my creditor does not agree?

If your creditor receives your letter and does not agree that the interest should still be frozen, you could ask a debt charity for support to negotiate with them. Alternatively, you could consider other debt solutions, including a debt management plan, which can also be set up by the best UK debt charities and organisations. 

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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