If your situation changes and you can’t afford to pay your debts, you’ll need to arrange a temporary repayment plan.
This is when you make a small payment to your creditors to show them that you want to repay your debts, but at the moment, you can’t afford to pay them anything more.
A temporary repayment plan isn’t a long term solution but gives you time, and breathing space, to take steps to improve your situation.
How a temporary repayment plan works
Firstly, you need to work out a budget to see how much you can afford to pay. When you’re working this out, you need to make sure that you always pay for your essential costs, such as mortgage or rent, food, electric and gas, first.
Once you’ve done this, any money you’ve got left over can be shared between your unsecured debts. You may find that you’re spending more than you've got coming in and have nothing left to pay your debts. In this situation you should make a small payment of £1 to each of your debts.
What to do next
If you’re struggling to pay your household bills or debts, the best thing you can do is get some debt advice. Our online Debt Remedy tool will provide you with a tailored budget and debt solution, to help get your financial situation back on track.
If you’d prefer to talk to us call our free Helpline on 0800 138 1111 and speak to one of our expert advisors.
