Ask a Creditor to Freeze Interest: Sample Letter

If interest and charges stop affordable payments from reducing your debt, ask the creditor to review them. Explain your budget and the support you need.

In this guide, we’ll cover:

•  How to ask your creditors to freeze interest.
•  If creditors must freeze interest.
•  Ways to write off some debt.
•  How to prove a financial problem.
•  A simple interest calculator.

We know you might be worried about your debt problem. That’s why we’ve created a free letter template that you can use.

Let’s dive in!

Letter Template

Dear support team,

Account reference: [reference]

I am experiencing financial difficulty because [brief explanation]. After essential living costs and priority bills, I can currently afford £[amount] every [period]. I enclose a realistic income-and-expenditure summary.

Please review the interest and charges on this account and consider suspending, reducing or waiving them. At present, [explain how charges affect the balance, using accurate figures].

Where FCA consumer-credit rules apply, please consider appropriate forbearance and a sustainable repayment arrangement. If we agree such an arrangement and I meet its terms, please ensure interest and charges are treated as required so that the balance does not grow during it.

Please confirm your decision, the payment and review dates, any effect on collection and credit reporting, and the reason for any refusal.

Yours faithfully, [name]

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)

Can I ask my creditors to freeze interest?

You can request an interest or fee review where you are struggling. Relief can help affordable payments reduce the balance, but does not automatically solve every financial difficulty.

Use the template to explain your own circumstances and request a written decision; its use does not guarantee a complete freeze.

Do they have to oblige?

For regulated consumer-credit debts, firms must consider appropriate forbearance. Where a repayment arrangement is used as forbearance and you meet its terms, interest and charges must be reduced, waived or cancelled as needed so the balance does not grow during the arrangement.

A full freeze is not automatic in every informal arrangement, but the required treatment must reflect the applicable FCA rules and circumstances. Ask the firm to explain its decision.

If the response appears unfair, use its complaints process and seek free debt advice rather than assuming this is only a discretionary goodwill request.

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How to prove financial difficulty

To prove that the interest is not helping you get out of debt and even making your finances worse, you might want to give the creditor details about your monthly income and expenses. You can do this by providing them with a budget explaining everything you have to pay each month (including other debts) and how much money you receive.

Provide relevant evidence and explain any support needs. Do not send unnecessary sensitive documents or agree to payments you cannot sustain.

You can even show your creditor how their interest rates are affecting your ability to pay off the debt altogether. You can use my free interest rate calculator to see how interest on your credit affects your monthly bills.

This is a guidance tool only and not an assessment. For accurate interest calculations, contact the company issuing the credit. Do not rely solely on this calculator’s results.

» TAKE ACTION NOW: Fill out the short debt form

Are the interest and charges fair?

There is no single interest cap covering every loan or credit card. Particular products, including high-cost short-term credit, have specific limits, and unfair or unlawful charges can be challenged under the relevant rules.

You can ask a debt charity to look at your agreement and find out whether you have been wrongfully charged too much interest. You can then dispute fees added to the debt and unfair interest rates, such as an excessive charge for sending you a notification.