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Reconsider My Pro-rata Offer – Letter Template

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Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

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Janine
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Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Mar 14th, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Featured in...
reconsider pro rata offer

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Introduction

Did your creditor(s) refuse your pro-rata payment offer? Use this letter template to send a request for them to reconsider your pro-rata debt repayment offer. Stressing the need to reduce your payments and the fairness of using a pro-rata offer might make some of your creditors change their mind. 

MoneyNerd has created pro-rata debt repayment offer letter templates (second request) for people with individual and joint debts. Download the one which is right for you for free, add your account details and shoot it off in the mail. It could be the letter that eases your financial situation. 

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Letter Template

To Whom It May Concern

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

Thank you for your recent [letter/telephone call]* (required) about the above account.

I am sorry that you feel unable to accept the offer which I have made. Most of my other creditors have accepted the offers made to them and I have begun making payments. I cannot offer you more because I can only afford £[money for creditors]* (required) each month between all my creditors, and it would be wrong to stop or reduce payments to my other creditors in favour of your company. I have worked out my offer to you on a pro-rata basis. This is the same method that the County Court uses to work out repayments.

As my other creditors have agreed to my repayment offers, please reconsider my offer. As a gesture of goodwill, I will be making the payments that I have offered to your company from now on.

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)

How much should you pay towards debt?

You should only agree to make monthly debt repayments that you can afford. To work out what you can reasonably afford to repay each month without getting into further debt, you should create a budget with your incomings and outgoings. This will help you discover how much disposable income you have leftover, which should then be used to make repayments. 

If you have multiple creditors, you might want to consider using a pro-rata payment offer. This will ensure each creditor receives a fair amount of your monthly disposable income depending on how much money you owe them.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get started

What is a pro-rata payment?

Pro-rata payments are when every party involved receives a fair share of the payment proportional to the whole. It might sound confusing, but it becomes clear with an example. 

Let’s imagine you have two credit card debts, one is £250 and the other is £750. The £750 debt is 75% of your total debt (£1,000), which means you should pay the £750 credit card provider 75% of your disposable income each month – and pay the £250 credit card company 25% of your disposable income each month. 

How do you work out pro-rata debt payments? 

If you want to make a pro-rata debt repayment proposal, you will need to know how to work out how much you will repay each creditor. Here are the steps to follow:

  1. Work out your disposable income each month
  2. Add all your debts together
  3. Divide each debt amount by the total of all your debt
  4. Multiply the answer from stage 3 by the amount of disposable income you have
  5. The answer is how much you should propose to pay for that debt (repeat for all the other debts)

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

Natasha

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

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Reviews shown are for The Debt Advice Service.

Do creditors have to accept pro-rata payments? 

Creditors do not have to accept pro-rata offers. They may want to chase you for more money and not care about your other creditors. However, most companies see pro-rata offers as you doing your best to make sure everyone is getting the right amount of money proportional to the debt you owe them. 

If it is rejected, it is usually because you have debts of significantly different value. For example, you could have a £100 debt and a £5,000 debt. In a pro-rata offer, the £100 debt would not receive much of your disposable income, meaning the creditor would be waiting a long time for you to pay the debt off. 

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

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The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.