Informal Agreement with Creditors
Are you struggling to make the payments on your debt, or do you need more time with which to pay off the amount you owe?
Entering into an informal agreement with creditors can help you steady the ship and sort your finances.
Speak to one of the Debtfix team to talk and walk you through the process, or we can refer you to a trusted budget adviser or financial mentor that will be able to see you locally.
How does an informal agreement with creditors work?
This is a simple arrangement that you reach between some or all of your creditors to pay your debts at a lower rate than you are contractually required or over a longer period of time.
This can be a very flexible arrangement but it won’t always mean that interest and charges are frozen, potentially leading to an increase in your overall debt and the time over which it will need to be repaid.
There may be no change to the legal contract or agreement entered into, and this is something that can be done yourself or through a budget adviser or financial mentor.
Who can benefit from an informal agreement with creditors?
There are no rules about who is, or is not eligible. It is best used for people that just need a short period of time to get their finances back under control.
This might be the right debt solution for you if:
you’re struggling to keep up with the cost of your current repayments, but have a steady and relatively stable income;
you can afford to make lower contributions over a long period of time, after paying your priority debts; or
you only need to do this for a short period of time to avoid long term increases in interest and charges.