Negotiating With Your Creditor – Sample Letter Templates

Are you looking for a sample letter to arrange payments with your creditor? You’re not alone. Every month, over 170,000 people visit our website seeking advice on debt matters.

We understand your worry about this debt-related problem. It can be hard to know how to speak to creditors. This is why we’re here to help. 

This post will give you:

•  An introduction to negotiating with your creditor.
•  Tips on how to continue accepting an offer.
•  Ways to freeze interest.
•  Steps to make a full and final settlement offer.
•  Advice on how to hold action on your account.

We have also included sample letter templates that will make your task easier. Let’s get started.

Continue Accepting my Offer

If you are currently repaying your debt with a repayment plan but know your account is due to be reviewed, use our continue accepting my offer letter template to ask your creditor to stick to the current agreement. 

Continue Accepting my Offer

Freeze Interest

Sometimes your debt repayments mostly go towards paying off the interest on the debt and not the actual debt itself. If this sounds familiar and you want to get out of debt faster, consider asking your creditors to freeze interest with this letter template. 

Freeze Interest

Full and Final Settlement Offer

You could save money and become instantly debt free by making a full and final settlement offer. If you want to make one of these offers to your creditors, use our free full and final settlement letter template to make a strong case. 

Full and Final Settlement Offer

Hold Action on your Account

Have you just been asked to repay your debt? Most creditors will give you time to seek debt advice and look for the best debt solution for your financial situation. You can request that your creditor gives you breathing space and freezes interest with our hold action on your account letter template. 

Hold Action on your Account

Hold Action on your Account Coronavirus

You might want to request that creditors hold action on your account for other reasons, including financial changes due to the COVID-19 pandemic. If you have been impacted by COVID restrictions and need time to reassess your debt strategy, ask creditors to hold action on your account with this free letter template. 

Hold Action on your Account Coronavirus

Pro-rata Offers

Pro-rata offers are a fair and reasonable way to propose debt repayments with all your creditors based on how much you owe each of them and how much disposable income you have. If you have multiple creditors and want to propose a fair repayment plan to everyone, use this pro-rata offer letter. 

Pro-rata Offers

Reconsider a Token Offer

A token offer is a £1 per month repayment plan used by people who do not have any money to repay their debts. It shows that you acknowledge the debt, and it can be an effective solution in the short term. If your creditors rejected your initial token offer, use this letter template to ask them to reconsider your token payment proposal. 

Reconsider a Token Offer

Reconsider My Pro-rata Offer

Did one or more creditors reject your pro-rata repayment proposal? If so, use this free letter template to ask them to reconsider the offer. We can stress that you are offering the best repayment terms that you can afford right now, and that this is the only way to pay back all your creditors fairly. 

Reconsider My Pro-rata Offer

Terminate a Hire Purchase Agreement

Under Section 99 of the Consumer Credit Act, you are legally allowed to terminate a hire purchase agreement. Inform your creditor that you are cancelling your hire purchase agreement with this free letter template. 

Terminate a Hire Purchase Agreement

Token Payment or No Offer of Payment

You can make a token payment offer of £1 per month or state that there will be no offer with this free letter template. Our letter shows that you are offering the best repayment you can afford at this moment and stresses the need for creditors to accept your token payment plan. 

Token Payment or No Offer of Payment

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Write off After Death

If your loved one has passed away with an outstanding debt, use this letter template to ask the creditor to write off the debt. Most of the time they will agree, but you may have to use the deceased’s estate to pay back some of the debt. Find out more by clicking below!

Write off After Death

Write Off the Debt

Although creditors are not obligated to write off your debt, some creditors will wipe the debt if you have extreme financial difficulty. The Lending Standards Board urges its members to be reasonable and understanding of these situations. Ask your creditors to write off your debt with our letter template. 

Write Off the Debt

Write Off the Debt (Second Request)

If your creditor has rejected your request to write off the debt, you could ask them to reconsider based on your financial situation. We have a letter for second requests to wipe debt too!

Write Off the Debt (Second Request)