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Can I reduce my debt repayments?

If you are struggling to pay your debts, you may be able to ask creditors (the people you owe money to) to accept lower monthly payments. Before you contact your creditors, make sure you know how much you can afford to offer. Use My Money Steps to work out a financial statement showing your income, spending and debts.

Some debts are more important than others because the law gives different creditors different ways of getting their money back.  For example, if you are behind on your mortgage, rent, gas, electric, council tax, court fines or child maintenance, deal with these first. This is because if you don’t act quickly, these creditors could;

  • take away your home (called ‘repossession’ or ‘eviction’
  • cut off your gas or electricity (disconnection);
  • send the bailiffs to take belongings from your home; or
  • ask the magistrates’ court to send you to prison.

My Money Steps will give you advice and information about how you can deal with these debts.

If your debts are non-priority debts such as credit cards, bank loans, catalogues, overdrafts or payday loans, My Money Steps will work out fair repayment offers based on what you can afford. 

You can use your My Money Steps financial statement and sample letters to show your creditors what you can afford to pay. For more information and advice, start My Money Steps.

 

Start My Money Steps

 

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