Informal Agreement

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You might have a lot of small debts spread across different credit cards, maybe a few unpaid bills or bank loans that are starting to mount up? As a temporary solution, just to help you get back on your feet again, an Informal Agreement could be an option for you to consider.

What is an informal agreement?

An informal agreement is a repayment plan that you personally organize with your lenders - such as a bank or building society - where you arrange to continue paying off your debts at a reduced amount each month until you can afford the full repayments.

This is a good arrangement to help you manage short term debt problems, as it gives you some lee-way during times of financial difficulty to help you get control of your debts again.

What are the costs?

There are no costs involved to set up an informal agreement as you can set up the plan yourself.

It is wise to seek available free advice with any questions you may have before you contact your creditors to approach them with your offer. Please feel free to call us now on 0800 011 4253 for professional guidance, or you can contact your local Citizen's Advice Bureau for further information.

Are there any risks?

The agreement is called informal because it means that your creditors can choose to reject or ignore your request at any time. It's important for you to realise that this is worthwhile only as a temporary solution, because it's unlikely that your creditors will agree to a longer term than a few months.

Other ways of coping with debt:

Everyone's situation is different, so why not simply call us now on 0800 011 4253, where our financial advisors are on hand to answer all your questions. We will help you make the right decision about a suitable debt management solution and put you in touch with the best possible contacts so you can gain control of your finances again.

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