Introduction

If you recently received a debt repayment request, you can ask your creditor to hold action on your account for 30 days while you seek debt advice and work out how you will get out of the debt. 

Our free letter template is a readymade way to inform your creditor what is going on, ask for breathing space and even request that no interest is added to the account while you get help. 

Simply download our hold action on your account letter template and fill in some account information. We have a letter template for people with sole and joint debts. Our template will make the process less stressful and save you time. 

Letter Template

To Whom It May Concern

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

I would appreciate it if you could hold action on the above account for a period of at least 30 days to give me the breathing space I need to do a budget sheet and work out the best way to deal with my debts.

Also, if you are adding interest or other charges to the account, I would be grateful if you would freeze these during this period so that my debt does not get any bigger.

I will contact you again as soon as possible with further details of my financial situation and my proposals for repaying my creditors.

I look forward to hearing from you as soon as possible.

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)

What is holding action on your account?

Holding action on your account, also known as creditor breathing space, is when the creditor agrees to not chase you for debt repayment or start legal action while you get debt advice. It usually happens right at the start of the process when you first get asked to repay the money. 

You can request that a creditor gives you some time to assess the situation, get debt advice and work out the best way to get out of debt in your situation. Holding action on your account may also mean freezing any interest accumulating on the debt. 

Will creditors stop contacting me during breathing space? 

When creditors give you this type of breathing space, they are not likely to contact you to ask for a payment. They may contact you on rare occasions when they are required to by law. Or you may receive a letter from them which had already been put in the post before you requested they give you breathing space. 

Do creditors have to give you breathing space?

Multiple codes of conduct state that creditors should provide breathing space to new debtors. The Credit Services Association, The Lending Standards Board and the Finance and Leasing Association all state that lenders must hold the account while the debtor seeks advice and support. Members of these organisations will therefore grant breathing space. 

Smaller companies that are not a member of these organisations might not grant breathing space, but it is unlikely. 

You cannot get breathing space for some debts, including but not limited to court fines, council tax debts and rent arrears. 

How long will a creditor hold action on my account?

Your account will typically be held for 30 days. It is crucial that you use this time effectively by getting help from a debt charity, creating a monthly budget and putting together an affordable debt repayment proposal if needed. 

How do I ask my creditor for breathing space?

You should ask your creditor for breathing space in writing by using our free letter template. We have made it so easy to ask a lender to hold your account. Alternatively, you could ask a debt charity to do it for you, but this could slow down the process.

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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