You may find that your creditors may refuse your offer of payment because it isn’t enough to cover your normal contractual payment. Even if they refuse, you must pay the amount you have offered, however small it is, as a gesture of goodwill. Don’t pay more than you can afford even if the creditor pressures you to do so.

Creditors may consider freezing interest and stopping charges to give you an opportunity to improve your situation. It is at the discretion of the creditors to do this as they are not legally obliged to do so.

There are various ways in which you could make a reduced payment:

Standing Order – This method is appropriate if you plan to make the payment over a long term rather than a short term. Once a standing order is set up, payments are automatically made for a set amount on a date of your choice. Only you can make alterations to the payment. To set up a standing order you need the account number and sort code of the creditor you want to make the payment to.

Postal Order – You can get a postal order from the post office. There is a charge made by the post office for this. You will need to purchase a postal order every time your payment is due and then send it to your creditor by post.

Payment slip – Many creditors will provide a payment slip, usually attached to the bottom of your statement. You can take the slip along with your payment and pay over the counter at a bank or building society.