Dealing with the people you owe
Clear guidance on your rights, how to communicate with creditors, and how to negotiate affordable repayments without being pressured into more than you can manage.
A creditor is any person or organisation you owe money to. When you fall behind on payments, dealing with creditors can feel intimidating — but you have clear rights under UK law, and there are proven strategies for communicating and negotiating effectively.
The most important principle is this: do not hide. Contacting your creditors proactively, being honest about your situation, and making realistic offers based on a proper budget is the best way to protect yourself and move towards a solution.
Your rights when dealing with creditors
Creditors in the UK must follow rules set by the Financial Conduct Authority (FCA). These rules exist to protect people in debt from unfair treatment. Here is what creditors must and must not do:
- ✓Creditors must treat you fairly and with respect
- ✓They must not use threatening language or aggressive tactics
- ✓They must not contact you at unreasonable times or excessively
- ✓They must give you reasonable time to seek debt advice
- ✓They must consider affordable repayment offers based on your budget
- ✓They must not pressure you into borrowing more to pay them
- ✓They must follow FCA rules and pre-action protocols before court action
Breathing Space (Debt Respite Scheme)
If you live in England and Wales, the Breathing Space scheme gives you legal protection from creditor action for up to 60 days while you get debt advice. During this period:
- Creditors cannot contact you or chase the debt
- Interest and charges are frozen
- Enforcement action is paused
A free debt adviser can start a Breathing Space application for you. It is a powerful tool that gives you time to sort out your finances without pressure.
How to negotiate affordable repayments
Prepare your budget
Know your income, essential spending and disposable income before you make any offer. This is your evidence.
Write to each creditor
Send a letter or email with your repayment offer and a copy of your budget. Use written communication so you have a record.
Be realistic
Offer what you can genuinely afford, not what you think the creditor wants to hear. Overcommitting leads to broken agreements.
Ask to freeze interest
Request that the creditor freezes interest and charges while the repayment plan is in place. Many will agree if you are working with a debt adviser.
Keep paying
Start making the payments you offered, even if the creditor has not formally agreed. This shows good faith.
Seek help if refused
If a creditor rejects your offer, contact a free debt adviser who can negotiate on your behalf or help you explore formal solutions.
What if a creditor refuses your offer?
Creditors are not obliged to accept informal repayment offers, but they must consider them. If a creditor refuses your offer, do not panic — and do not stop paying what you offered. Here is what to do:
- Keep making the payments you offered — this demonstrates good faith
- Write back asking them to reconsider, with updated budget evidence
- Contact a free debt adviser who can negotiate on your behalf
- If the creditor takes court action, the court will assess what you can afford — not what the creditor wants
The court process for unsecured debts involves a County Court Judgment (CCJ). The court looks at your income and essential spending to determine a fair repayment rate. In many cases, the court orders a lower payment than the creditor was demanding.
This page provides general information only. It is not personalised financial or legal advice. Your situation is unique — please seek guidance from a qualified, FCA-authorised debt adviser before making decisions about your debts.
Related guides
How to Deal with Debt: A Practical Starting Guide
A calm, step-by-step guide to facing debt problems in the UK — from taking stock of what you owe to finding the right help.
How to Make a Debt Budget: A Step-by-Step Guide
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What to Do If You Cannot Pay Your Debts
Practical steps to take if you have no money to pay your debts — from prioritising essential bills to seeking free advice and formal solutions.
How to Deal with Creditors: Communication and Negotiation
Practical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.
Debt Collection in the UK: What You Need to Know
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Individual Voluntary Arrangement (IVA)
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Bankruptcy
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Administration Order
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Breathing Space (Debt Respite Scheme)
Breathing Space is a government scheme giving you legal protection from creditor action for up to 60 days while you get debt advice. Learn how it works and who qualifies.
Debt Consolidation
Debt consolidation combines multiple debts into a single loan or payment. Understand the pros and cons, when it makes sense and when to avoid it.
You do not have to face debt alone
Free, independent debt advice is available right now from trusted UK organisations. Speaking to a trained adviser is the first step towards getting back on track.