If you have a problem with long-term debt, then informally negotiated agreements with creditors may involve either:
- Payments from your income, or
- Payments from lump sums you receive for example from an inheritance or from relatives, or
- A combination of income and a lump sum
Creditors may be prepared to agree to write-off part of what you owe them: any agreement to do so should be confirmed in writing.
An offer to creditors is calculated after working out affordable repayments based on personal circumstances, however, this requires a supporting explanation. You also need to take account of whether creditors will agree to cap or penalties, charges and interest.
If your inability to make payments is temporary, perhaps as a result of a short-term illness, for example, creditors may agree to accept a repayments holiday for a limited period.
