Sample letter

Freeze interest (sole name)

Use this letter when a creditor refuses to freeze interest on your account.


25 November 2020

Dear Sir/Madam

Account No:

Thank you for your of concerning the above account. I am sorry that you feel unable to suspend interest charges on the above account. The majority of my other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist me in my present financial difficulties, and can only serve to increase my total debt.

As you are aware, I have already paid considerable sums in interest to my account. If interest charges continue, the monthly instalments I am paying will not even cover that interest. Also, the cooperation of my other creditors who have agreed to freeze interest already would be put at risk.

I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I make would actually reduce the balance outstanding to your company.

I look forward to hearing from you.

Yours faithfully