Who’s it for?
A temporary payment arrangement is for someone who finds themselves struggling financially (because, for instance, their circumstances have changed) so they need to reduce the amount they’re paying towards their debts each month.
How does it work?
The first thing to do is to work out your budget and see how much you can afford to pay towards your debts. If you can still spare an amount that will realistically help, then write to each of your creditors explaining your situation and offering the reduced monthly amount (but make sure you don’t offer more than you can realistically afford). Include details of your budget and calculations.
Your creditors might not accept your offer, but in many cases they are prepared to be flexible, especially as you are making an effort to try and solve your problems.
If they do accept, make sure you keep to the arrangement and use the breathing space you’ve been given to solve your financial difficulties for good – which means resisting the temptation to borrow any more money as a short-term fix (as that will only lead to a bigger debt problem).
How can we help?
StepChange Debt Remedy can identify the best debt solution for your problem; whether a debt management plan, IVA or other debt programme.
