If you’re struggling to pay a debt, it is important that you deal with the situation early. Failure to take steps to manage your debts can result in defaults, county court judgements and even bankruptcy, which can have long-lasting effects.
If you are struggling to make payments, or are worried about making repayments in the future, you should speak to the person or organisation to whom you owe money (ie your creditor). Explain your situation, clearly detailing why you are struggling to make the necessary payments, and ask for the other party’s help. It will generally be down to your creditor to decide whether or not they are willing to reduce your payments or interest rates.
If you are facing financial difficulties, you may consider using a Letter proposing payments in instalments to request a different payment plan. If you require a different payment plan for your energy bills, consider using an Energy repayment plan.