Letter to creditors offering reduced payment
(CREDITOR) Date:...../...../...... Dear Sir / Madam, Re ACCOUNT NUMBER: Thank you for providing me with details of the above account and payments made by me so far. I enclose a personal budget sheet which shows my total income from all sources and the total outgoings of my household. As you can see I have only £...(No Money) left for my creditors. The offers I have made have been worked out on a pro rata distribution of my available income to each creditor asking them to accept reduced payments (no payments) and in view of my circumstances. I would therefore like to offer £.... per month to repay this account. Please confirm that you have agreed to forgo all interest or other charges that would otherwise increase my indebtedness so the payments I make reduce the amount outstanding. (In view of my current circumstances would you please accept that I can pay nothing to you at the moment. I would ask that you consider a moratorium, and forego any interest or other charges which would otherwise increase my indebtedness until my circumstances improve.) I am making every effort to increase my income. As soon as my circumstances change or my priority debts are cleared, I will contact you again. (Please forward a paying-in book or standing order form so that I can arrange prompt and regular repayments.) Thank you for your assistance and I look forward to hearing from you in due course. Yours faithfully,
A Smith |
IVA's
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The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]