Informal Arrangements
Reduced payments, without the formality.
Agree reduced or paused payments directly with your creditors while your situation improves.
Is it right for you?
An informal arrangement may suit you if…
- Temporary drop in income
- One or two creditors
- You expect things to improve
- You want to avoid formal solutions
It may not be suitable for
- Large debts across many creditors
- Situations needing legal protection
Don’t worry — there are other options, and our check will point you in the right direction.
Real-life example
How an informal arrangement could help.
Emma, 45, Sheffield
Emma’s hours were cut for three months, making her loan payments unaffordable.
Her creditor agreed a temporary reduction while her hours recovered.
Monthly payments
Duration
Default risk
Illustrative example only. Names and figures are representative; your outcome depends on your circumstances.
How it works
How an informal arrangement works.
Work out a budget
Understand what you can genuinely afford.
Contact creditors
Explain your situation and offer a payment.
Review regularly
Update creditors as your situation changes.
The full picture
Advantages and disadvantages.
Advantages
- Flexible and quick to set up
- No fees if arranged yourself
- No insolvency record
- Can be temporary
Things to consider
- Creditors don’t have to agree
- Interest may continue
- No legal protection
- Credit file can still be affected
Could an informal arrangement work for you?
Five quick questions. No credit search. No obligation.
Safe, secure, confidential
Informal FAQs
Common questions.
Do I need an adviser?
No, but advice can help you make a realistic offer.
Will interest stop?
Not necessarily. You can ask creditors to freeze it.
Is it legally binding?
No. Either side can change the arrangement.
Not sure if an informal arrangement is right for you?
Answer five quick questions and we’ll help you understand which options may suit you.
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