Step 4 Dealing with your non-priority debts

What if a creditor refuses my offer?

Sometimes a creditor will refuse to accept the offer of payment you have made on Your budget. They may demand more than you can afford. Sometimes they may refuse to freeze the interest. If a creditor accepts your offer, double-check that they have frozen the interest if they do not state this in their letter. Don’t give up. You can usually persuade creditors to accept your offer of payment by using the following steps.

  • Start paying the amount you have offered anyway as a gesture of goodwill.
  • Contact us for advice on how to approach your creditors if they refuse your offer or refuse to freeze the interest.

Interest and charges

  • Write to the creditor again and ask them to reconsider their decision. Tell them your offer is reasonable and is all you can afford.
  • If some of your creditors have accepted your offer of payment, and frozen the interest, write to the creditors who have refused and tell them this.
  • If a collector calls for your payment, you should not let them persuade you to pay more than the amount you have offered. Otherwise, you will not be able to afford the payments you have agreed with your other creditors, particularly for your priority debts.
  • Most creditors are members of a trade association and have agreed to a code of practice. The code usually says creditors should be sympathetic in cases of genuine difficulty.
  • Creditors may ask you to fill in their own budgeting form. Ask them to accept Your budget instead as this has all the information they need.

See our fact sheet:

Payment offer - what to do if a creditor refuses.

This includes sample letters you may find useful.

Contact us for advice if you feel a creditor is acting unreasonably. We can give you details of their trade association and advise you about the Financial Conduct Authority’s Consumer Credit sourcebook (CONC). CONC sets out rules and guidance which organisations must follow when collecting debt. We can also tell you about making a complaint to the Financial Ombudsman Service (FOS).

Extra advice:

what if creditors ask for proof?

Sometimes, creditors ask for extra information or ‘proof’, such as wage slips or letters from other creditors. You may want to help with reasonable requests but, if the creditor wants proof of all your bills, point out this would not usually be asked for by the court. Contact us for advice.


don’t pay more than you can afford

The offers of payment in Your budget are fair to all your creditors and the most you can afford. If you allow one creditor to persuade you to pay more, you will not have enough for your outgoings and other creditors.