Hi I am currently making all payments but I am working 7 days a week. I want to ask my creditors to freeze interest whilst still making my current level of payments for a fixed period of 12 months. This will enable me to drastically cut the amounts owed or clear completely in some cases but I don't know how to do it. All the letter templates I see are for those not able to make repayments. Do you have a sample of a letter I could send?
You could always set up a debt management plan with a company such as Payplan or Stepchange. It is unlikely a company will freeze interest while you are making full payments.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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I am sorry that I am having difficulty keeping up my monthly payments to your company. I am currently having to work seven days a week to be able to keep up and this is having a detrimental impact on my health, both physical and mental.
I am writing to ask that you consider agreeing to freeze interest and other charges to stop my debt increasing. This will allow me to concentrate on reducing the principal balance without the accumulation of interest and charges. I propose to pay £xx per month. It would be appreciated if this arrangement could last for 12 months. If you are unable to agree to this, please explain your reasons.
[I enclose a summary of my income and expenditure for your information.]
Thank you for your help and I look forward to hearing from you.
The last paragraph ( in square brackets) could be omitted, but creditors are more likely to consider the request with supporting details --- they may well ask for this anyway, so be prepared. As well as I&E they may want details of other creditors and balances, along with proposed payments to them ( to make sure they payments are pro rata).
Alternatively you could approach StepChange and ask them to negotiate a Debt Management Plan on your behalf --- they carry more weight, being, in part, funded by creditors and charge no fee for this service.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk